Absa Bank of Kenya is ramping up investment in technology, with up to Sh3 billion annual spending to anchor its digital strategy amid growing customer preference for mobile-based banking services.

The lender, which has been diversifying into new lines such as bancassurance and asset management while investing in technologies that enable out-of-branch services, says it has set its annual technology spending at between Sh2 billion and Sh3 billion as part of its strategy to accelerate digital transformation.

“Typically, we now do Sh2 billion to Sh3 billion of investments per year [in technology], and 2025 was no different in ensuring we are migrating transactions to digital platforms. We are making it easier for our customers to transact with us,” said Abdi Mohamed, chief executive at Absa Bank Kenya.

The lender, which spent Sh2.16 billion on technology last year, targets to increase the share of new business lines in total revenue to at least 10 percent.

The new lines, including bancassurance, asset management, custody management, and securities, posted a 17 percent income growth to Sh4.3 billion last year.

Mr Mohamed said about 94 percent of all Absa customer transactions in 2025 happened outside branches, compared with a range of between 40 percent and 50 percent several years back. He added that the bank is seeing a shift to self-service channels, both from retail and corporate customers.

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Absa Bank Kenya chief finance officer 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.

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 (CTI) 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.

Mr Omari said the improvement in CTI was an element of better efficiency and revenue growth for the lender whose net profit grew 10 percent to Sh22.9 billion in the period under review.

A latest survey by the Kenya Bankers Association (KBA) on customer satisfaction shows a continued rise in preference for self-service channels in Kenya’s banking sector. Fully automated or self-service channels, such as mobile apps and internet banking, had a preference rate of 56.49 percent among the surveyed customers as of 2024, compared to 45.7 percent in 2023.

“This preference reflects a growing demand for convenience, efficiency, and 24/7 access to banking services, driven by advancements in digital technology and customer expectations for seamless experiences,” said KBA in the survey.

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