Absa Bank Kenya has officially launched its custody services business, marking a significant expansion of its corporate and investment banking offerings in the region.

The custody business will provide safekeeping and servicing of assets, settlement for both local and cross-border investments, regulatory compliance and reporting, portfolio reconciliations, execution of corporate actions, and timely client reporting.

Target clients include fund managers (collective investment schemes and gratuity funds), pension fund trustees, life insurance companies, Saccos, Shariah-compliant investors, and other institutional investors.

The service was unveiled during a high-level stakeholder forum in Nairobi themed “Aligning to the Future of Investments,” which brought together key industry players from pensions and capital markets, including fund managers, administrators, insurance firms, Saccos, regulatory bodies, and industry associations.

Absa Bank Kenya Managing Executive for Corporate and Investment Banking James Agin said custody services have been overlooked but are key to connecting investors to trusted financial partners.

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“Today, they are emerging as strategic enablers, and Absa is committed to supporting our clients’ growth stories through smart, forward-looking solutions,” said Agin.

Since initiating the custody business, the bank has reported strong early growth in revenue and assets under custody — a positive indicator of market appetite.

Absa’s custody platform leverages its Euroclear infrastructure licence, enabling clients to access global investment opportunities in Eurobonds, offshore securities, and commodities, including the Absa-sponsored Gold ETF — currently the only listed commodity on the Nairobi Securities Exchange.

In addition, Absa Bank Kenya is preparing to offer custody for virtual assets by aligning its offerings with Kenya’s draft Virtual Assets Policy and the proposed VASP Bill.

Agin emphasized that Absa is heavily investing in technology to deliver a seamless, future-ready custody solution and is partnering with global custodians such as BNY Mellon, State Street, and Societe Generale to provide clients with broader international market access.

The Bank is also collaborating closely with regulators such as the Capital Markets Authority, Retirement Benefits Authority, Nairobi Securities Exchange, and the Central Depository & Settlement Corporation to ensure alignment with global best practices.

With its custody services now live in Kenya, South Africa, and Mauritius, Absa plans to extend the offering to Uganda and Ghana later this year — reinforcing its ambition to become a leading pan-African investment partner.