DTB set to spend Sh350m on new Kenyan branches

DTB finance director Alkarim Jiwa during a briefing on March 28, 2022, in Nairobi. PHOTO | DIANA NGILA | NMG

DTB Group is investing a total of Sh350 million to open 20 new branches in Kenya this year as part of its expansion plan.

The lender has opened three branches and the remaining 17 will be established in the coming months.

“The capital expenditure for the 20 branches is Sh350 million. We are investing in both our digital platforms and physical branches to give customers hybrid services,” said Alkarim Jiwa, chief financial officer at DTB.

The three branches recently opened are in Imara Daima (Imaara Mall), Kamakis (Viashla Business Centre) and Kahawa Sukari (Ruhan Plaza) which pushed DTB’s physical branch network in Kenya so far to 64.

The Nairobi Securities Exchange-listed bank will have more than 80 branches once all the new outlets have been established.

Mr Jiwa said branches still play an important role in banking despite more than 90 percent of transactions migrating to digital platforms.

The branches are important in terms of acquiring retail customers, solving their issues and offering them advisory services, among others.

DTB is also investing $30 million (Sh3.5 billion) in digital services including Internet banking over two years. Investments in such platforms has intensified in the banking sector and is seen as a means to enhance efficiencies, grow scale and improve convenience for clients.

“As a tier-one bank, we are keen on increasing our market presence as this underpins our growth strategy. The investments we are making are not only a show of the bank’s financial strength but also a sign of commitment to creating more convenience for our customers,” DTB chairman Linus Gitahi said.

Chief executive Nasim Devji said the bank’s move to continue expanding its branch network is a testament to its confidence in the Kenyan economy.

“As DTB, we remain optimistic about Kenya’s economic recovery. We are, therefore, making strides to be closer to our customers to support them to attain their personal and business goals,” said Ms Devji.

Other big banks that are also opening more branches in the country are Co-op Bank and NCBA Bank Kenya.

The sector, overall, has gone slow on physical expansion as uptake of apps, mobile, Internet and agency banking grows.

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