By Njoroge David 

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.

While lenders in Europe and North America continue to shut physical outlets, Kenyan banks are growing their networks to reach underserved regions where cash-based transactions and in-person services remain dominant.

I&M Bank is the latest to do so, having opened a branch in Kapsabet, Nandi County, and announced plans for another in Nyali, Mombasa County.

The bank said the Kapsabet outlet will target MSMEs and agricultural value chains, including tea, maize and dairy, while offering digital and in-person services.

“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 and Business Banking.

Patel said the branch will offer agribusiness loans, equipment financing and value chain credit. Nandi County Executive Committee Member for Trade and Industrialisation 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 bank now operates 65 branches in 24 counties, following earlier openings in towns including Mtwapa, Kawangware, Kenol, Meru Makutano, Embu, Kericho, Bungoma, Kakamega and Mwea.

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.

Other banks have made similar moves with Co-operative Bank opening 15 new branches this year, including in Kilifi, Meru and Bungoma.

Family Bank launched its 96th branch in Kilifi in August, while Access Bank Kenya expanded its footprint from 22 to 85 branches after acquiring National Bank of Kenya.