Absa Bank Kenya spent Sh717 million on voluntary separation with 82 of its employees in January this year, joining peers who have rolled out similar schemes amid accelerated use of technology across the banking sector.
The lender revealed that the voluntary exit programme was completed at the end of January 2026, and was not reflected in the staff numbers for the year ended December 2025.
Absa did not explain the reasons for the staff exit scheme, though it came in the wake of continued investment in technology. The lender says it spends between Sh2 billion and Sh3 billion on technology every year.
Many organisations use voluntary exit programmes to cut costs, especially payroll, while others deploy the scheme to refresh talent and realign skills with evolving business needs, particularly as technology reshapes roles.
‘Subsequent to the reporting date, the bank implemented a voluntary exit programme affecting 82 employees, with all exits completed by January 31, 2026, at a total cost of Sh717 million,’ the lender said in its annual report. Absa closed 2025 with 2,217 employees, which was higher compared to 2,167 in the previous year.
The spending on staff benefits rose to Sh13.81 billion in 2025, up from Sh13.53 billion the previous year.
Between 2021 and last year, the lender had added 238 employees. The separation with 82 will mark the first time in five years that the Absa Kenya staff size will be reduced, unless the lender recruits new workers.
‘This restructuring decision was made after 31 December 2025 and therefore qualifies as a non-adjusting event, as it reflects conditions that arose after year-end. In line with International Accounting Standard 10, the bank has disclosed the nature and estimated financial effect of this material event.’
This is the latest voluntary exit programme for Absa, which in 2020 spent Sh1.06 billion on a similar initiative that trimmed its staff size by 161. The lender said then that the decision to cut jobs in senior and junior roles was taken on the back of continued investment in automation.
Absa Bank Kenya has a presence in 38 counties, which it serves with 91 branches and service centres, 204 ATMs, over 8,000 agency outlets, and internet and mobile banking platforms.
Chief finance officer at Absa Bank Kenya, Omari Yusuf, said the investment in technology has helped the lender move more of its staff from back office to front office for services such as advisory, thereby supporting the growth of the business.
In addition, he said, the investment in technology has contributed to a fall in operating expenses, reflecting enhanced efficiency.
In the year ended December 2025, other operating expenses fell by 21 percent to Sh7.35 billion, with Mr Omari attributing this to technology.
‘In there are opportunities from automation. We see the use of robotics for some of our key processes and a move to automate channels to give us the opportunity for savings while delivering convenience and flexibility to our customers,’ said Mr Omari.
The digital investments helped Absa’s cost-to-income ratio-a measure of how much the bank spends to generate one unit of revenue-improve to 36.5 percent in 2025 from 46 percent in the previous year.