KCB Group, Kenya's largest bank with a market capitalisation of $963.3 million, has completed its migration to iColo's tier III data centre. The move, which began in 2022, was motivated by a need to control costs, with the bank previously incurring millions of shillings on power, cooling, and uptime for its in-house data centre.

The migration to iColo's facilities in Karen and Gigiri, Nairobi, marks a significant shift towards colocation, where multiple companies lease space and share resources. This model allows banks to achieve economies of scale and reduce costs. KCB is not the only Kenyan bank to adopt this approach, with Equity Bank and NCBA also using colocated facilities to manage costs.

The move is part of a larger trend among local banks to favour off-site data centre solutions. Additionally, Kenyan banks are also upgrading their core banking applications, with Stanbic recently upgrading its core platform, Temenos, to version R24. KCB uses Temenos for traditional banking and recently updated it to version R21 for its Rwandan operations.