Absa Kenya automates 71% of operations after $31 million technology investment

The bank’s 2025 sustainability report shows that customers completed 94% of all transactions through digital and alternative channels. As a result, only a small share of banking activity now takes place inside branches. Absa is not alone. Kenya’s largest banks report similar trends as customers increasingly use mobile and online banking for everyday transactions. I&M Bank said customers completed 98% of its transactions digitally in 2025, while Equity Bank, KCB Bank and Co-operative Bank each said more than 90% of customer activity now takes place outside branches. Banks spent years expanding mobile banking platforms. Today, they are directing more of their technology budgets towards the infrastructure that supports those services.

Absa said it used the KES 4 billion investment to upgrade cloud infrastructure, expand robotic process automation, introduce machine learning tools and strengthen its network infrastructure. The bank said those systems support payment processing, fraud detection and day to day operations. The bank also said automation and process improvements helped keep its cost-to-income ratio at 37%. The investment forms part of a broader technology strategy. Former chief executive Abdi Mohamed said in April that Absa expects to spend between KES 2 billion ($15.5 million) and KES 3 billion ($23.3 million) on technology each year.

Profits grew even as lending slowed

Absa increased profit after tax by 10% to KES 22.9 billion ($178 million) in 2025. Customer loans and deposits grew by just 1%, suggesting the bank relied more on tighter cost control than stronger lending growth. The bank cut operating expenses by 21% to KES 7.35 billion ($57 million), while its cost-to-income ratio improved to 36.5% from 46% a year earlier.

Employee numbers tell a different story

Absa did not link its technology programme to job losses. The bank added 43 permanent employees during 2025, taking total headcount to 2,210. It also reduced employee turnover from 7.7% to 6.2%. After the reporting period ended, 82 employees accepted voluntary separation packages that cost the bank KES 717 million ($5.6 million). The bank excluded those departures from its 2025 employee figures. Absa also relied on 3,345 people outside its permanent workforce, including contractors, consultants, technology vendors, outsourced security and facilities staff, interns and trainees. The bank did not disclose how much it spent on those workers or how it allocated them across different roles. Absa continues to operate 91 branches and service centres, together with 204 ATMs serving more than 1.2 million customers. Even so, customers now complete almost all routine banking through digital channels. Branches increasingly handle services that customers cannot complete through an app or online platform.