Absa Bank Kenya has rapidly expanded its custody services offering, with assets under custody reportedly exceeding Sh40 billion since its relaunch earlier this year.
The service, aimed at institutional investors such as pension funds, fund managers, insurance providers, and Saccos has found a receptive market, reflecting growing demand for secure and sophisticated asset management solutions.
Launched in May, Absa’s custody arm marked a strategic expansion of its corporate and investment banking portfolio, placing the bank among select institutions delivering institutional-grade fund safekeeping and settlement services in Kenya.
The system covers a range of services, including asset safekeeping, trade settlement, compliance reporting, portfolio reconciliation, and corporate actions execution.
Within just a short period since launch, demand surged, pushing assets under management to around Ksh40 billion a clear signal of institutional investor trust and the market’s craving for reliable custodial infrastructure.
Absa’s value proposition is strengthened by strategic global partnerships with custodians such as BNY Mellon, State Street, and Société Générale, which provide clients seamless access to global investment flows.
The bank also holds a Euroclear infrastructure licence, enabling clients to explore Eurobonds, offshore securities, and commodities including Absa’s own Gold ETF listed on the Nairobi Securities Exchange.
Moreover, Absa is proactively aligning its services with Kenya’s forthcoming virtual assets regulation under the Virtual Assets Service Providers (VASP) Bill, positioning itself to support custody of digital assets when the framework becomes operational.
The launch forum themed “Aligning to the Future of Investments” attracted a broad range of stakeholders from pension administrators and insurance managers to regulatory bodies and industry associations highlighting the importance placed on developing institutional-grade infrastructure.
The successful uptake of these services underscores Absa’s ambition to establish itself as the custodian of choice for Kenya’s growing institutional investment ecosystem.
With the pension sector expected to grow substantially in the coming years and assets under management projected to reach record highs, Absa’s early positioning offers them a critical first-mover advantage.
This rise in assets under custody to over Sh40 billion not only represents confidence in Absa’s operational capability but also signals a maturing financial infrastructure in Kenya one increasingly aligned with global best practices, institutional demands, and evolving regulatory landscapes.
Written By Ian Maleve
