Nairobi, July 29 -- Absa Bank Kenya has signalled a pivot towards private sector lending from investments in government securities as its South African parent pushes the local unit to diversify its revenue base.

The tier-one lender sees an opportunity to increase lending to businesses and households as returns on government securities decline.

The bank also expects fresh digital investments to generate additional non-interest-funded income to help shore up revenues after earnings fell in the first quarter of 2026.

Absa says parking money in government securities, especially short-dated Treasury bills, left it exposed as interest rates fell faster than expected.

"I'd say it's a unique situation where you have Treasury bills at 16 perce...