Absa Bank Kenya MD and CEO Abdi Mohamed presents a gift to Absa Bank Ruaka agent Sammy Njoroge during the launch of Absa Bank agency banking expansion drive. [Courtesy]
"This distribution model will not only drive efficiency in our business as we empower individuals and businesses to thrive but also contribute to the growth of our economy by facilitating essential financial services in underserved areas", added Mr. Mohamed.
This service expansion is consistent with customers' growing preference for alternative banking channels, which is fuelled by the convenience afforded by the agency model.
According to the Central Bank of Kenya's Annual Report for the financial year 2022/23, as of June 2023, there were 21 commercial banks and three microfinance banks engaged in agency banking, with a total of 85,328 and 936 active agents, respectively, since the establishment of agency model in 2010.
The report also noted a considerable increase in banking transactions through agents, with 1.3 billion transactions compared to 1.1 billion in June 2022. During the same time period, the value of agency banking transactions increased from Kes 9.0 trillion to Kes 10.8 trillion, demonstrating that agency banking services are becoming more widely used in Kenya.