Branches are the customer face of most commercial banks, But yesterday Bank of Africa Kenya announced the closure of its 12 branches. This is almost 1/3 of its total branches in Kenya, with those targeted located in Nairobi (Githurai, Gikomba, Monrovia, Gateway, South B, Outer Ring Road, Likoni Road, Thika Road), Nanyuki, Embu, Kitale and (Mombasa (Digo Road branch)

This comes after Ecobank Kenya also announced earlier the closure on nine branches in Nairobi (Chambers, Ongata Rongai, Gikomba, Embakasi, Thika Road), Meru, Kitale, Busia, and Malindi.

Both banks attributed the closing of branches moves to reducing costs as they invest and offer more digital services to customers.  This may bring back bad memories of the 1990’s and early 2000 when large banks closed small or unprofitable branches, many of which were in rural Kenya. But unlike that time, banks are not completely abandoning their customers but leaving customers with a taste of their services through digital platforms, mainly by mobile phones as well as electronic and agency ones.

This comes at a time when banks like Equity have frozen new branches and other like Coop Bank celebrate that only 25% transactions are done at branches, as customers have the choice to use other channels like mobile phones. 

Still, it leaves many traditional customers wondering how they can connect with their bank without nearby branches. Many banks also have agents in rural and densely populated urban areas to handle cash deposits and withdrawals, but will their customers lose touch without physical branches that they can visit?