SBM bank further shakes Kenya’s banking industry with more branches

 

SBM Bank Kenya, an affiliate of State Bank of Mauritius (SBM) has enhanced its branch network in Kenya with the opening of new fully-fledged branches in Nairobi and Mombasa cities.

 

The opening of the new branches now affirms the lenders quest to tap more of the vibrant Kenyan banking industry which has at least 43 lenders both locally owned and multi-nationals.

The lender has unveiled the Eastleigh branch on General Waruinge Street, Gikomba branch in Gikomba market (both in Nairobi) and Mombasa based Jubilee Arcade branch which became operational on March 11.

Speaking in Eastleigh during the official opening of one of the branches that will serve the business community in the area, SBM Bank Kenya Deputy Chief Executive Officer Jotham Mutoka said the opening of the new branches was informed by the strategy of the lender to increase the accessibility of its services to customers, while at the same time creating a business environment that’s entirely focused on the ultimate customer convenience.

“Our new branches are pillars of our customer service even as our structures are built on digitization where the customers are able to benefit from online banking platforms”, he explained.

The bank, which currently operates a 52-branch network across the country is keen on expanding its outreach by growing the service channels in strategic areas across the country.

“The economic dynamism of Eastleigh and Gikomba areas as business centers in Nairobi, informed our decision to set up branches not only to increase convenience for our customers in the regions but also to tap into the almost KES 2 billion that exchanges hands daily. Our focus in the SME space is real and establishment of the two branches is a strong testimony to this,” said Mr. Mutoka.

Kamukunji MP Yusuf Hassan who was the chief guest during the launch welcomed the investment made by SBM noting that two of the branches opened today (Gikomba and Eastleigh) are within his constituency.

Hon. Yusuf noted that Eastleigh continues to attract investment with the number of shopping malls growing from 24 in 2013 to over 59 malls this year.

“We are currently investing in infrastructure to enable the growth of business within Eastleigh and the wider Kamukunji Constituency. We have already finished works on General Waruingi Street and are moving on to First Avenue. For the wider constituency there are plans to dual Juja Road to increase access with additional resources dedicated to widening Muratina Road creating a direct link to Thika Road so that traders do not have to go back into town,” Hon. Yusuf added.

Currently, SBM Bank is leveraging on its multi-pronged banking model via the mobile app, agency banking, card business and internet banking to complement its branch network. It aims at gradually positioning itself as a one-stop-shop providing retail and consumer products, SME and corporate banking in support of international trade finance business across the Africa, Mauritius, India and Asia corridor.

Strategic entry

The bank entered the Kenyan market with 0.4 per cent market share and took only one year to grow into a top-tier bank with over 50 branches and assets, only second to Kenya Commercial Bank.

SBM bought Fidelity Commercial Bank with 14 branches before investing in Chase Bank’s 62 branches and Rafiki Microfinance Bank with 19 branches.

The move has seen it get hold of a huge customer base in Kenya who hheld accounts with their respective lenders before the takeovers.

With an asset base of US$5.3 billion as of September 30, 2017, the bank came in second after KCB which has about US$6.4 billion in asset.

Source: The Exchange