Kenya’s I&M Bank Hits 98% Digital Usage as Growth Shifts to Revenue per User

Why It Matters

With digital adoption near saturation, Kenyan banks must find new revenue streams beyond transaction volume, reshaping profitability and competitive dynamics across the region’s financial services market.

Key Takeaways

• 98% customers transact digitally, near saturation
• Non‑interest income up 31% to $111 M
• Assets under management jump 223% to $764 M
• Banks shift focus to share‑of‑wallet products
• Competition evolves into digital financial marketplaces

Pulse Analysis

Kenya’s banking landscape has reached a tipping point where digital onboarding is no longer a growth lever. I&M Group’s disclosure that 98% of its clientele now uses mobile apps, USSD or web portals mirrors a sector‑wide trend; most tier‑one lenders report over 90% of transactions occurring off‑site. This saturation reduces the marginal benefit of expanding user bases and forces institutions to extract greater value from existing relationships, prompting a strategic pivot toward higher‑margin services.

The immediate response is a pronounced shift toward non‑interest revenue streams. I&M’s non‑interest income rose 31% to $111 million, outpacing overall earnings, while assets under management surged 223% to $764 million as the bank rolled out wealth‑management and foreign‑exchange platforms. By leveraging its digital infrastructure for cross‑border FX flows and online trading, I&M is turning its app into a financial marketplace, bundling lending, savings, insurance and payments. Such diversification mitigates pressure on transaction fees, which have been eroded by intense competition and price transparency.

Rival banks are quickly emulating this model. Equity Group is expanding its investment and insurance offerings, and KCB has deepened merchant‑payment capabilities after acquiring Riverbank Solutions. The race now centers on share‑of‑wallet metrics rather than raw user counts, compelling investors to assess banks’ product breadth, cross‑sell efficiency, and digital ecosystem robustness. As Kenya’s digital banking market matures, institutions that successfully monetize their existing digital user base will likely capture superior returns, reshaping the competitive hierarchy in East Africa’s financial sector.