Banks defy digital tide to court rural borrowers

From left: Shameer Patel, Mary Githinji, Rev. Erick Kalya, H.E. Isaiah Keter, Oliver Kirior and Stanley Gachoki cut a cake during the opening of the I&M Bank Kapsabet branch on September 4, 2025.

Kenya’s banks are expanding rural branches despite global closures, chasing micro, small and medium enterprise and farm lending in a shift from the digital‑only focus seen elsewhere.

The push comes as lenders in Europe, North America and parts of Asia scale back physical outlets to cut costs and meet changing customer habits.

In Kenya, however, branch networks have grown steadily, driven by competition for untapped rural markets and the need to serve cash‑based sectors such as agriculture.

Data from the Kenya Bankers Association shows branch numbers have risen in recent years, even as mobile and internet banking transactions dominate.

Analysts say physical outlets remain critical for onboarding new customers, building trust and offering complex services that are harder to deliver digitally.

I&M Bank on Monday opened a branch in Kapsabet, Nandi County, and announced plans for another in Nyali, Mombasa County, under its 2024‑2026 iMara strategy to target high‑growth, underserved areas.

“Kapsabet town serves as a vital agricultural and commercial hub for the North Rift region. I&M Bank’s presence here is a demonstration of our commitment to being where our customers need us most,” said Shameer Patel, Director Retail Business Banking.

Patel said the branch will provide agribusiness loans, equipment financing and value chain credit, alongside digital banking services.

Nandi County Executive Committee Member for Trade, Tourism and Enterprise Development Isaiah Keter said the bank’s entry could spur local commerce.

“The presence of strong financial institutions like I&M Bank is the backbone of trade, enterprise and industrialisation,” noted Keter.

The expansion follows the opening of 10 branches earlier this year in towns including Mtwapa, Kawangware, Kenol, Meru Makutano, Embu, Kericho, Bungoma, Kakamega and Mwea.

The bank now operates 65 branches in 24 counties.