Kenyan banks expand physical branches despite digital banking growth

Kenyan banks are aggressively expanding their physical branch networks despite a significant shift toward digital and mobile banking. While digital channels handle the vast majority of transactions—with some institutions reporting rates between 92% and 97%—lenders are investing in physical presence to build trust and reach new markets.

I&M Bank aims to reach 100 branches by 2026. Meanwhile, Family Bank, which currently operates 97 branches, expects to surpass the 100-branch milestone before the end of the year to better serve micro, small, and medium enterprises (MSMEs). NCBA also recently joined the 100-plus branch group.

Major players such as KCB Bank, Equity Bank, and Co-operative Bank already maintain extensive networks, with branch counts exceeding 200. The expansion strategy focuses on emerging towns, high-growth commercial zones, and urbanizing areas where physical presence is viewed as essential for customer engagement and capturing retail deposits.