More banks are racing to join the 100-plus branch club, even as customers increasingly embrace mobile and internet banking, signalling that physical outlets are taking on new roles beyond traditional cash and cheque transactions.
NCBA crossed the 100-branch threshold in Kenya in May 2025 with the opening of outlets at Tatu City and Nord Mall in Ruiru. Family Bank, which currently has 97 branches, has said it plans to open another in Upper Hill this week and cross the 100 mark before year-end.
The lender, which listed on the Nairobi Securities Exchange last June, is seeking to join KCB Bank Kenya, Equity Bank Kenya, Co-operative Bank of Kenya and NCBA, which now have more than 100 branches in the country.
‘We currently have 97 branches spread across 32 counties, but under our strategic plan, we want to increase that number. This year, we expect to cross the 100-branch mark. We need to be closer to our customers,’ said Nancy Njau, chief executive at Family Bank.
‘We continue to invest in digital banking where 92 percent of our transactions are happening, but we want to be physically present, particularly in areas with a large concentration of MSMEs, because that is our niche.
The push for larger branch networks comes amid rapid digital adoption, but banks say physical outlets remain important as urbanisation and the emergence of new commercial centres create fresh pockets of demand for financial services.
Besides Family Bank, Diamond Trust Bank (DTB) has 92 branches, up from 84 two years ago, and is among lenders still planning further expansion.
KCB, Equity and Co-op, which have the largest branch networks in Kenya at 223, 222 and 218, respectively, have also continued to expand. Co-op has recorded the biggest growth among the three, rising from 171 branches in 2024, while Equity has grown from 197 and KCB from 207.
The expansion is also evident among mid-sized lenders. I and M Bank has increased its Kenyan outlets from 41 to 73 under its iMara 3.0 strategy for 2024-2026, which targets deeper activity in the retail and small and medium enterprise (SME) segments.
Sidian Bank has grown its footprint from 44 branches in 2024 to 60 currently, joining I and M in the expansion journey. Both lenders are seeking a bigger share of the retail and SME market, with I and M targeting the 100-branch mark.
The expansion reflects a push to capture business from SMEs spread across established towns as well as fast-growing urban centres and trading hubs.
Towns such as Ruiru, Kikuyu, Thika, Karuri, Ongata Rongai, Juja and Kitengela have recorded population growth, encouraging banks, microfinance institutions and saccos to establish physical outlets.
As businesses expand beyond Nairobi and traditional urban centres, banks are positioning branches closer to entrepreneurs who need working capital, asset finance, trade finance and other services that often require more interaction with banking staff.
Kingdom Bank, one of the smaller lenders expanding its network, recently opened a branch in Naivasha, taking its physical count to 29 from 20 two years ago. The Co-op Bank subsidiary has been opening branches in areas with sustained commercial activity and demand for MSME-focused financial services.
‘Naivasha has strong economic activity across agriculture, hospitality, trade and industry. Our presence is intended to strengthen access to financing for businesses and individuals who are part of this growth and require responsive, practical banking support,’ said the lender.
Banks pursuing mass-market customers see a wider branch network giving them visibility and credibility in new markets while providing a physical point of contact for customers who are less comfortable with fully digital financial services.
The role of branches is also shifting from traditional transaction points to advisory and relationship-management centres. Lenders increasingly use their outlets to guide customers on investments, borrowing, insurance, wealth management and business financing.
The advisory role is particularly key for SMEs, where lending decisions depend on an understanding of the business, its cash flows and growth prospects.
Continued investment in branches, however, comes against accelerating digital adoption, which has made many routine banking transactions possible without visiting a branch.
Mobile money, banking apps, internet banking and agency banking have reduced the need for physical access for services such as low-value loan applications, cash transfers, payments, balance enquiries and bill settlement.
Banks are increasingly using digital platforms to handle high-volume, low-value transactions while reserving branches for more complex interactions, advisory services and customer acquisition.
The seeming contradiction between expanding branch networks and growing digital usage reflects a shift towards a multi-channel banking model rather than a return to brick-and-mortar banking.
Some banks, however, have moved in the opposite direction. Absa has reduced its network from 107 branches in 2024 to 91 this year, while SBM Bank Kenya has cut outlets from 41 to 33. Stanbic Bank has also edged down from 31 to 30.
But some lenders that closed branches in locations they deemed too close to each other are returning to selected markets with a more targeted approach.
SBM Bank last week launched its 34th branch in Nanyuki, targeting businesses such as conservancies, flower and horticulture exporters, SMEs and farmers.
‘Nanyuki is exactly the kind of market our strategy is built for. The region is a high-growth economy where relationship banking and digital convenience should work together. We are determined to bring banking closer to our customers at a time when our own numbers show the model is working,’ said Bhartesh Shah, CEO at SBM Bank Kenya.