In an era where digital banking is rapidly becoming the norm, I&M Bank is making a bold statement with its latest move. The Kenyan financial institution has announced the opening of five new physical branches, expanding its footprint in both urban centers and underserved regions.
This expansion, bringing the bank’s total branch network to 52 across 16 counties, signals a commitment to a hybrid model that blends digital innovation with traditional brick-and-mortar banking.
The decision to invest in physical branches comes at a time when many banks globally are scaling back their physical presence in favor of digital-only services. However, I&M Bank’s strategy reflects a nuanced understanding of the Kenyan market, where face-to-face interactions still hold significant value for many customers, especially in rural and newly urbanizing areas.
“We are excited to extend our reach into these vibrant business hubs and look forward to supporting the local communities through job creation and financial solutions, especially for small and medium-sized enterprises which are the backbone of our economy,” says Gul Khan, CEO of I&M Bank.
The new branches are strategically located in Narok, Busia, Ruiru, Tatu City (Kiambu County), and Embu. Each location has been chosen for its unique economic potential and the specific needs of its community.
In Narok and Embu, the focus is on supporting the agricultural and livestock sectors, which form the backbone of these regions’ economies. “Our wide-ranging, fit-for-purpose trade financing and agribusiness propositions are set to boost Narok and Embu’s agricultural sector and Busia’s trade activities. In Tatu City and Ruiru, we look forward to partnering with industries and businesses to drive economic empowerment and wealth creation across the supply value chain,” Khan added.
The Busia branch, situated near the Uganda border, aims to facilitate cross-border trade, a vital economic activity for the area. Meanwhile, the branches in Tatu City and Ruiru are positioned to serve the growing industrial and residential developments in these rapidly expanding urban centers.
This expansion strategy aligns with Kenya’s broader economic goals of financial inclusion and regional development. By establishing a physical presence in these areas, I&M Bank believes it is not just providing banking services; it’s also creating jobs and stimulating local economies.
The move has been welcomed by local business leaders. At the opening ceremony of the Busia branch, Kenya Association of Manufacturers (KAM) Chairman for Western and Nyanza Regions expressed optimism about the impact of I&M Bank’s expansion.
“I&M Bank’s growing footprint will be an essential partner in enabling manufacturers to embrace sustainability, scale their operations, and contribute to job creation in this region. We are honoured to be associated with a bank that has continually demonstrated its commitment to delivering financial solutions to all Kenyans.”
However, I&M Bank’s investment in physical branches doesn’t mean it’s turning its back on digital innovation. On the contrary, the new branches are designed to be high-tech hubs, equipped with self-service machines and digital interfaces. They will serve as spaces where customers can learn about and adopt digital banking services, bridging the gap between traditional and modern banking practices.
This hybrid approach reflects a growing trend in the banking sector, particularly in emerging markets. While digital banking offers convenience and reaches customers in remote areas, physical branches continue to play a crucial role in building trust, providing financial education, and handling complex transactions.
The expansion also comes at a time when Kenya is experiencing rapid urbanization and increased commercial activity in smaller cities and towns. By establishing a presence in these growing urban centers, I&M Bank is positioning itself to capture new markets and support emerging businesses.
The bank’s strategy also includes tailoring its services to the specific needs of each location. In Narok and Embu, for instance, the focus will be on agricultural financing and support for small-scale farmers. In Busia, the bank will offer specialized services for cross-border traders, including foreign exchange and trade finance products.
This localized approach extends to the design of the branches themselves. Each new branch incorporates elements of local culture and architecture, creating spaces that feel familiar and welcoming to the community.
The expansion is not without its challenges. Maintaining a large physical network in the face of increasing digitalization requires significant investment and operational costs. Moreover, as more customers become comfortable with digital banking, the role of physical branches may need to evolve.
However, I&M Bank sees these challenges as opportunities for innovation. The bank is exploring concepts such as “smart branches” that combine digital services with human expertise, and “pop-up branches” that can be quickly deployed to serve temporary needs or test new markets.