Absa Bank, linked to Kenyan tycoon Baloobhai Patel, opens new branch to support local firms

Timilehin Adejumobi -

Key Point

  • Absa Bank Kenya opens 85th branch in Eldoret, aiming to meet local banking needs and bolster regional business growth.
  • The new branch, located in Rupa’s Mall, is part of Absa’s strategy to enhance its presence in underserved regions.
  • Absa Kenya’s expansion includes a partnership with Old Mutual Group, introducing an insurance package for SMEs.

Absa Bank Kenya, a Nairobi-based lender partly owned by Kenyan businessman Baloobhai Patel, is ramping up its expansion efforts within the country with the opening of a new branch in Eldoret, its 85th branch in Kenya.

The move is part of a broader strategy to enhance its presence in underserved regions and meet the increasing banking needs of these areas.

Absa Bank expands footprint in Eldoret, boosting local business growth

The new branch, situated in Rupa’s Mall, aims to support the growing business community in Eldoret and the Rift Valley region. Abdi Mohamed, the bank’s Managing Director and CEO, emphasized the significance of this expansion.

“We are thrilled to open our doors to the people of Eldoret,” Mohamed said. “This expansion underscores our commitment to serving the underbanked and empowering Africa’s future.”

Strategic moves amidst industry challenges

As part of its expansion, Absa has partnered with Old Mutual Group to introduce “Linda Biz,” an insurance package designed for Small and Medium-Sized Enterprises (SMEs). This product includes asset, medical, and life insurance coverage, further enhancing the bank’s service offerings.

Absa’s expansion in Eldoret aligns with a broader trend of banks focusing on secondary cities and rural areas. The bank’s efforts come at a time when it is engaged in a dispute with KCB over the control of Savannah Cement, which is currently under administration due to a Ksh14 billion ($98 million) debt default.

Absa Bank Kenya: A key player in the Kenyan banking sector

Formerly Barclays Bank Kenya Limited, Absa Bank Kenya plays a key role in the Kenyan banking sector, offering retail, corporate, treasury, and card services. It also fosters local enterprises and SMEs through strategic partnerships.

Baloobhai Patel, a major Kenyan businessman and partial owner of Absa with a 1.03 percent stake, continues to play a vital role in the banking sector. His investments in blue-chip stocks have cemented his position among Kenya’s wealthiest individuals.

Absa’s strategic expansion, fueled by its growing branch network and cutting-edge product offerings, perfectly positions the lender to tap into the vast opportunities presented by Kenya’s rapidly growing banking sector.