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ABSA
Having evolved its slogan from ‘Africanacity’ to ‘Your Story Matters’, Absa Bank Kenya has underpinned a deliberate embrace of customer-centricity, where every individual’s journey and dreams take centre stage.
Formerly Barclays Bank Kenya, the lender stands as a cornerstone of the Kenyan financial sector and a vital subsidiary of the South African-based Absa Group. The bank’s journey began in 1916 when the National Bank of South Africa opened its first branch in Kenya. Over the years, through significant mergers and rebranding, Absa Bank has emerged as a leading entity in African banking.
In 1925, the National Bank of South Africa merged with the Anglo-Egyptian Bank and the Colonial Bank, bringing its Kenyan operations under Barclays Bank. By 1953, it obtained its current form of licensing, and in 1978, it was locally incorporated as Barclays Bank of Kenya, a wholly-owned subsidiary of Barclays Bank International.
A major shift occurred in 2013 when Barclays PLC unified its African operations under the ‘One Bank in Africa’ strategy, aiming to streamline operations and boost returns from its African units, leading to the creation of Barclays Africa Group. In July 2018, the group rebranded to Absa Group, marking a strategic shift to forge a distinct identity from Barclays PLC and position itself as a premier African financial services provider.
Today, Absa Group operates in ten sub-Saharan African countries, including Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, Tanzania, Uganda, and Zambia. It also has representative offices in Namibia and Nigeria, international outposts in London and New York City, and a technology support hub in the Czech Republic.
In Kenya, Absa Bank has established itself as a significant player in the financial sector. Listed on the Nairobi Securities Exchange (NSE), it is the sixth most valuable stock as of June 2024, with a market capitalization of KES 75.2 billion, representing about 4.23 percent of the NSE equity market.
Absa Bank excels in providing a comprehensive range of financial services through two key segments: Consumer Banking and Corporate Banking. The Consumer Banking division serves individual customers with current and savings accounts, deposit facilities, consumer loans, mortgages, and a variety of credit and debit card options, ensuring they have the financial tools to support their personal goals.
The Corporate Banking segment addresses the needs of businesses and institutions. It offers services like direct debit facilities, corporate current accounts, deposit options, overdrafts, loans, and credit facilities. Additionally, it specialises in foreign currency transactions and advanced derivative products, enabling businesses to manage their finances effectively and compete globally. These segments highlight Absa Bank’s versatility and dedication to serving its diverse clientele with excellence.
In 2023, Absa Bank expanded its workforce by adding 526 new positions as part of a growth strategy to diversify its business lines. The bank is also strategically expanding its physical presence, having recently opened a branch at Business Bay Mall in Eastleigh, with another set to open at Rupas Mall in Eldoret, bringing the total number of branches to 85. Managing Director (MD) Abdi Mohamed explained that this expansion aligns with the bank’s strategy to be customer-focused. While the number of branches may not increase significantly, the emphasis will be on a multi-channel strategy to enhance customer engagement through branches, digital platforms, and agency services.
Absa Bank consistently prioritises its customers by offering a range of affordable, innovative financial products and services. A prime example is the ‘Buy Now, Pay Later’ (BNPL) model, which allows customers to use Absa’s credit cards for purchases and convert these transactions into instalment plans of up to 12 months at reduced interest rates. This innovative solution enhances financial flexibility and reflects Absa’s responsiveness to changing consumer preferences. With attractive interest rates as low as 2.5 percent, Absa promotes responsible financial behaviour and fosters lasting customer relationships based on trust and mutual value.
Absa Bank’s excellence was recognised in 2023 at the seventh SFI Catalyst Awards by the Kenya Bankers Association (KBA). The bank received top honours for Best in Bank Operations and Best in Sustainable Finance, and was named the third overall best bank. The lender was also acknowledged for promoting diversity and innovation, ranking as the second Best Bank for Promoting Gender Inclusivity and the third Most Innovative Bank. Reflecting on these achievements, Abdi Mohamed emphasised the bank’s commitment to leveraging sustainable finance to drive positive societal and environmental change.
Under the transformational leadership of Abdi Mohamed, Absa Bank continues to advance innovation and excellence in the banking sector. With his extensive experience in top positions across Eastern Africa, Abdi Mohamed has been instrumental in steering the bank towards sustainable growth.
Absa Bank’s transformation from Barclays Bank Kenya to a key subsidiary of the Absa Group illustrates its impressive adaptability, agility and commitment to evolving with the times. This rich history, combined with Abdi Mohamed’s strategic leadership, positions Absa Bank as a beacon of progress in the financial industry.
With a strong legacy and clear strategic direction, Absa Bank is set to remain a trailblazer in the financial landscape, upholding its role as a cornerstone of the Kenyan banking industry and a significant player in the broader African market.
