Kenya's banks reach digital saturation, shift focus to monetizing existing users
Kenya's tier-1 banks have exhausted new digital users, with I&M Group reporting 98% of customers now transact digitally. I&M serves 727,000 customers with KES 668.9 billion ($5.2 billion) in assets, signaling market-wide saturation. The industry's shift to digital channels has cut branch usage, with most lenders handling >90% of transactions online. Banks now face revenue challenges as transaction margins shrink. I&M's solution: non-interest income surged 31% to KES 14.4 billion ($111 million), while assets under management jumped 223% to KES 99 billion ($764 million) through wealth products. Competitors like Equity and KCB are expanding financial marketplaces within their apps. The new competition phase focuses on share of wallet rather than user acquisition as digital access nears saturation.