I&M Bank Shifts Focus to Digital Banking as it Slows Branch Expansion

I&M Bank Kenya is shifting its growth strategy toward digital banking, a move that has led the lender to reduce its branch expansion plans for the coming year. The bank now plans to operate 79 branches by the end of 2026, down from an earlier target of 100 outlets under its three-year iMara 3.0 strategy. Currently, I&M has 71 branches and intends to open eight more before the end of the year to reach the revised target across 27 counties.

The adjustment follows a review of customer behaviour and the business value of opening new physical branches. As more customers choose to open accounts and conduct routine transactions through digital platforms, the bank says fewer new outlets are needed to maintain its national presence.

The shift reflects wider changes across Kenya’s banking sector, where lenders are increasingly relying on mobile and online channels to serve customers. Digital onboarding and transactions are reducing the need for large branch networks while helping banks control operational costs.
Even as it slows physical expansion, I&M says it will continue investing in digital services to ensure customers can access banking services more easily through their phones and other online platforms.

At the same time, the bank is strengthening support for small and medium-sized businesses. Through the Resilience Sustainable Business programme launched with B-Lab Africa, I&M plans to support 60 SMEs in 2026 through training and advisory services. The programme will run in three nine-week sessions, with the bank covering up to 80 percent of the training costs.

The move signals a broader strategy where digital growth and business support take centre stage, while physical branch expansion becomes more targeted and measured.