Absa expands digital offerings as unit trust market nears Sh1 trillion

Banking Director Moses Muthui, Absa Group Chief Executive for Personal & Private Banking, Sitoyo Lopokoiyit, Absa customer and influencer Judy Nyawira and Absa Bank Kenya Chief Executive Officer, Yusuf Omari during the launch of Absa Next, a fully integrated digital finance solution designed to meet the evolving needs and lifecycles of the next generation of consumers.Absa Bank Kenya is expanding its digital banking platform into wealth management, allowing customers to invest in professionally managed funds directly from their mobile phones.

This comes as competition intensifies in Kenya’s fast-growing collective investment schemes market.

The lender has introduced five investment products on its Absa Next digital banking platform, giving customers access to the Absa Shilling Money Market Fund, Dollar Money Market Fund, Equity Fund, Balanced Fund and Fixed Income Fund.

The expansion allows customers to move beyond routine banking transactions, savings and borrowing to building investment portfolios without visiting a physical branch.

Absa said customers can start investing with as little as Sh1,000, create multiple portfolios for different financial goals, top up investments, access statements and monitor their portfolio performance in real time.

The platform also lets existing Absa unit trust investors link their accounts, while qualifying customers can redeem from the Shilling Money Market Fund in real time into their Absa Wallet.

The move comes amid growing appetite for professionally managed investments, with Kenya’s collective investment schemes industry approaching the Sh1 trillion mark as households and institutional investors increasingly turn to pooled investment vehicles.

Data from the Capital Markets Authority (CMA) shows that assets under management in collective investment schemes rose to Sh948.7 billion in June 2026, up 11.4 per cent from Sh851.7 billion in March.

The number of investors also increased to 4.15 million from 2.45 million a year earlier, highlighting the growing popularity of unit trusts as an alternative to traditional savings and direct investment in financial markets

The growth presents an opportunity for banks to leverage their digital distribution networks to attract retail investors who may previously have considered investment products inaccessible or complicated.

Absa’s latest offering also builds on its existing position in the market.

Its unit trust scheme managed Sh31.39 billion in assets at the end of June, ranking eighth among Kenya’s collective investment schemes, according to CMA data.

Moses Muthui, Absa Bank Kenya’s Director of Personal and Private Banking, said the expansion was intended to make wealth creation more accessible by allowing customers to pursue different financial goals through one platform.

“Today’s launch is another important step in building a digital bank that enables customers to manage every aspect of their financial lives in one place,” he said.

Launched in September, Absa Next has attracted more than 300,000 users, with customers using it for bill payments, bill splitting, digital savings and instant day-one credit.

The investment expansion, however, comes with the need for greater investor awareness, particularly as the products carry different levels of risk and investment horizons.

Absa’s Equity Fund has reported a year-to-date return of 15.95 per cent, but its performance figures also show a 4.13 per cent decline over one month and a 0.80 per cent decline over three months, underlining the volatility associated with equity investments.

The bank cautions that past performance does not guarantee future returns and that unit prices can rise or fall.

The expansion comes against a backdrop of relatively modest returns on conventional bank savings.

Central Bank of Kenya data shows the average savings rate stood at 3.53 per cent in September 2026, while October inflation climbed to 7.3 per cent.

This makes investment diversification increasingly relevant for households seeking to preserve and grow their purchasing power, although investors must weigh potential returns against liquidity needs, fees and the possibility of capital losses.