How AI is transforming financial services and business in Kenya

As Kenya forges ahead on its digital transformation journey, there has been an uptick in the use of Artificial Intelligence (AI) in government and private sector institutions.

This is increasingly redefining how different institutions in the country conduct their operations, as AI is not only improving efficiency and reducing costs but also unlocking new opportunities for innovation, inclusion, and economic growth.

In the banking sector, AI is changing how financial institutions serve customers and manage risk.

According to a report by McKinsey, AI could contribute an additional 2.6 per cent to Kenya’s annual GDP by 2030, primarily driven by the financial sector. 

This is as banks and fintech companies increasingly deploy AI-powered systems for fraud detection, credit scoring, and customer service automation.

Such systems include AI-powered chatbots to handle customer inquiries efficiently. These chatbots are available 24/7, reducing wait times and improving customer satisfaction.

By analysing large volumes of transaction data in real time, these systems can identify suspicious activity, personalise financial products, and expand access to credit for underserved populations.

Mobile-first financial services are now being enhanced with AI capabilities that allow for smarter lending decisions and more responsive customer engagement.

 A 2025 report by the Central Bank of Kenya indicated that the banking sector is increasingly adopting AI-powered solutions to enhance efficiency and optimise decision making. This has revolutionised customer service, operations, and risk management.

“The top three applications of AI and ML by respondents were credit risk assessment at 65 percent, cybersecurity at 54 percent, and customer service at 43 percent. This was followed by electronic Know Your Customer (e-KYC) at 41 percent and fraud risk management at 40 percent,” the report said.

Within government, AI is being used by public institutions to explore how data-driven tools can promote efficiency and transparency to transform public service delivery and decision-making.

From predictive analytics in urban planning to intelligent systems for tax compliance and revenue collection. 

Early-stage applications in sectors such as healthcare and security are also showing promise, with AI supporting disease surveillance and resource allocation.

“AI presents an opportunity for government to become more proactive rather than reactive. With the right safeguards, it can significantly improve how services are delivered to citizens,” Kenya’s special envoy for technology Philip Thigo said.

Kenya’s private sector is also embracing AI with businesses across industries—including agriculture, retail, logistics, and manufacturing— integrating AI into their operations to optimize supply chains, forecast demand, and enhance customer experiences.

Small and medium-sized enterprises (SMEs), in particular, are leveraging accessible AI tools to scale operations and compete more effectively in both local and international markets.

The rise of AI adoption is being fueled by a growing ecosystem of local startups, global tech partnerships, and a steadily expanding talent pool of data scientists and engineers.

Innovation hubs and accelerators continue to play a key role in supporting businesses as they experiment with and deploy AI solutions.

“Kenya is no longer just a consumer of global tech—it is becoming a creator. What we are seeing is a shift from adaptation to innovation, where local talent is building solutions not just for Kenya, but for Africa and the world,” Thigo said.

As Kenya continues to position itself as a regional technology leader, the integration of AI into banking, government, and business signals a broader shift toward a smarter, more responsive, and more inclusive digital economy.

In that light, Gitex Kenya and AI Everything Kenya are set to host a three-day event from May 19-21, bringing together global technology leaders, policy makers, investors and innovators to shape the future of AI in Africa.

The event will unfold across two major venues, beginning with the Inclusive AI Summit at the Sarit Expo Centre, followed by the AI Everything Expo and conference at the Kenyatta International Convention Centre.

The three-day event will feature a one-day summit and a two-day exhibition, bringing together over 500 global enterprises and over 10,000 tech executives to discuss key topics including AI, cybersecurity, fintech and agritech.