Absa Bank Kenya invests KES 4bn in tech, automates 71% of processes

Absa Bank Kenya reported that a KES 4 billion ($31 million) technology investment in 2025 automated 71% of its processes, with 94% of customer transactions completed through digital and alternative channels. The bank said the shift reduced operating costs, helping lower its cost-to-income ratio to 36.5% from 46% a year earlier, while profit after tax rose 10% to KES 22.9 billion despite modest loan and deposit growth. Absa plans to spend KES 2–3 billion annually on technology to sustain the digital shift, which has also shifted branch roles as routine banking moves online. The bank still operates 91 branches and 204 ATMs serving over 1.2 million customers, and noted a rise in outsourced staff to 3,345, more than half its permanent workforce. Other Kenyan lenders showed similar trends: I&M Bank reported 98% digital transactions, while Equity, KCB and Co‑Operative Bank each said more than 90% of transactions now occur outside physical branches. The industry is redirecting tech spending from basic mobile and internet banking to cloud infrastructure, cybersecurity, artificial intelligence and data systems. For Nigerian banks, the trend shows how automation and cloud adoption can cut costs and expand digital services, a model local lenders could emulate to improve efficiency amid rising competition. What steps could Nigerian banks take to accelerate their own digital transformation while balancing branch networks and job impacts?

SOURCE: https://techcabal.com/2026/07/28/absa-kenya-automated-71-of-processes-after-31-million-tech-spend/