Absa Bank Kenya, one of the country’s largest banks by assets, increased its holdings of government securities by 19% in 2025 as weak loan demand pushed banks to channel more funds into state debt while digital income supported earnings. Investments in government securities rose to KES 115.1 billion ($890 million) in the year ended December 2025, while customer loans grew just 1% to KES 312.2 billion ($2.41 billion), according to the bank’s investor presentation shared on Wednesday. Profit after tax climbed 10% to KES 22.9 billion ($177 million) even as lending remained subdued. The results show how Kenyan lenders are leaning on government paper and fee income as household and business borrowing remains soft, reflecting weak credit demand across the private sector. Net interest income,...