Absa is preparing to launch a digital-only banking proposition in Kenya as it expands investment in technology and digital capabilities across its African operations.
About 5.4 million Absa account holders had adopted digital banking by the end of June, according to the group.
The planned Kenyan offering forms part of R8.8 billion in technology and digital-capabilities investment during the six months to June 2026.
“Kenya is a digitally mature market with very high penetration of mobile-money platforms. Absa Kenya is preparing to launch a digital-only proposition targeted at younger customers, with live customers already onboarded to test the offering,” said Johnson Idesoh, Absa Group’s chief information and technology officer.
Absa is also partnering with Kenyan fintech companies on data and credit-scoring capabilities to support the platform. The collaborations are intended to help integrate the offering into Kenya’s banking and payments ecosystem.
Across Africa, banks, telecommunications companies and fintechs are collaborating to deliver financial services more quickly.
Absa’s technology spending reached R16.7bn in 2025. The investment covers core infrastructure, internal platforms, data and collaboration tools, digital banking and contact-centre modernisation.
The group is also investing in AI-assisted customer service and AI tools for its workforce. More than 30,000 Absa employees across its African operations currently use AI tools to improve productivity, Idesoh said.
In Kenya, Absa has opened a technology hub to help expand its technology skills base.
The group is also increasing its use of cloud services across Africa, with more than 45% of its technology estate now hosted in the cloud, according to Idesoh.
“We are investing in threat-detection and response capabilities to protect our digital assets, while strengthening cybersecurity skills through our academy, including AI-related skills development,” he said.
Kenya’s digital-finance market
Kenya’s digital-finance market is led by M-Pesa, Safaricom’s mobile-money platform. Banks such as Absa are nevertheless seeking to expand their presence in digital payments and related financial services.
Idesoh acknowledged M-Pesa’s dominance but said Kenya’s market was evolving rapidly.
“The market is also seeing strong growth in digital-only financial services, while the Central Bank of Kenya has approved several digital credit providers over the past two years. Many banks have also launched their own digital banking solutions,” he said.
The Kenyan market differs sharply from South Africa, where banks remain the main providers of digital financial services and customers increasingly use mobile-banking apps for everyday transactions.
“At the same time, ecosystem-based competition is increasing, with retailers expanding further into financial services,” Idesoh said.
THE NATIONAL