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I&M Bank trims branch target in revised expansion plan
I&M Bank Retail and Business Banking Director Shameer Patel makes his remarks during the I&M Bank and B Lab Africa Partnership Capacity-Building Program launch on March 04, 2026 at the Hyatt Regency.
Photo credit: Francis Nderitu | Nation Media Group
I&M Bank Kenya has cut its branch expansion target to 79 outlets by the end of 2026, scaling back from an earlier aspiration of reaching 100 branches as part of a three-year growth strategy.
The lender, which currently operates 71 branches countrywide, says it will only add eight more outlets before year-end, bringing its footprint to 79 branches spread across 27 counties.
The bank had last year said that it would increase its branches to 100 by the end of 2026, as part of its iMara 3.0 strategy aimed at deepening its activity in the retail and small and medium enterprise (SME) segments.
Shameer Patel, director for retail and business banking at I&M Bank Kenya, said the lender has walked back on its earlier target of 100 branches in response to customer behaviour and commercial viability projections.
“So, we have 71 branches… By the end of this year, we expect to be at 79 branches across the country. Our aspiration was up to 100, but really, where we see growth, we’d open that,” Mr Patel said in an interview.
He noted that expansion will continue beyond the current strategic cycle, which is in its third year and due for refresh. The lender’s adjusted outlook comes amid broader shifts in the banking sector, where lenders are increasingly balancing to manage costs and respond to changing customer preferences.
Mr Patel said a significant portion of customer onboarding and engagement is now happening digitally, reducing the urgency of aggressive physical expansion.
“We’re also bearing in mind that we have a big investment in our digital arm. A lot of our customers are really engaging digitally and are coming on board digitally. So, we have presence, even without physical presence, inmany parts of Kenya just through our digital offering,” he said.
Kenya’s banking industry has in recent years seen a gradual rationalisation of branch networks, even as digital transactions surge and customers increasingly rely on mobile platforms for routine banking.
I&M’s moderation of branch growth reflects heightened scrutiny over return on investment in physical infrastructure, especially in a market where interest rate volatility and macroeconomic pressures have affected business cash flows.
The re-evaluation of branch opening targets also comes as the bank intensifies efforts to strengthen its SME franchise through non-lending support initiatives, including a newly launched Resilience Sustainable Business programme in partnership with non-profit network B-Lab Africa.
Under the nine-week programme, the bank will support 60 SMEs in 2026 across three cohorts of 20 businesses each, financing 80 percent of the training cost.
