Kenya, December 5, 2025 – A recent survey conducted by the Central Bank of Kenya (CBK) revealed that 65% of the banks utilizing artificial intelligence (AI) are applying it primarily for credit risk scoring, marking it as the most prevalent application in the nation’s lending sector. This finding underscores a significant shift towards technological integration in Kenya’s financial landscape.
According to CBK Governor Dr. Kamau Thugge, “The adoption of AI has brought about operational efficiencies, particularly in credit risk management, cybersecurity and customer service.” These advancements point to a broader transformation that could reshape the financial services industry.
In addition to credit risk scoring, other notable applications of AI in Kenyan banks include fraud risk management, digital onboarding, and eKYC (electronic Know Your Customer) processes. However, the survey indicates that many lenders still find themselves in the nascent stages of AI implementation. A subsequent report backed by the CBK highlights that 67% of assessed financial institutions are classified as “AI immature,” either still in pilot phases or lacking beyond basic awareness of the technology.
This slow uptake may stem from various concerns identified by the banks, particularly regarding transparency, data governance, and the explainability of AI models. Such apprehensions represent significant hurdles for financial institutions in fully embracing AI capabilities. Meanwhile, on the mobile money front, Safaricom is embarking on an extensive upgrade to its MPesa platform under a new initiative dubbed “Fintech 2.0,” which is designed to be cloud-native, AI-embedded, and scalable.
At the 2025 Cybersecurity Summit, Safaricom CEO Peter Ndegwa remarked, “Cybercrime is a challenge no single institution can solve alone.” He disclosed that the upgraded MPesa now features real-time fraud detection and risk scoring, predictive monitoring, and “self-healing” systems capable of processing up to 12,000 transactions per second. This technological evolution is crucial as the digital finance landscape continues to expand.
Ndegwa noted the positive impact of AI on fraud reduction, stating, “We have seen a huge reduction in fraud incidents thanks to AI … it’s helping us detect identity theft, prevent social engineering and deliver worry-free digital services.” Such advancements not only bolster security but also facilitate a more seamless user experience.
Beyond enhancing security measures, the upgrade to MPesa introduces features such as tap-to-pay, wallet sharing, and split payment capabilities. These improvements are poised to significantly enhance convenience and access for millions of users across Kenya. For consumers, especially those underserved by traditional banking systems, the merging of banking technology, AI, and mobile money advancements could lead to easier loan access, expedited payments, and improved fraud protection.
As the financial sector continues to evolve, the integration of AI within lending practices and mobile financial services may pave the way for a more inclusive and efficient financial ecosystem. This convergence stands to benefit not just the banks and financial institutions, but also the broader Kenyan population, thus highlighting the transformative potential of technology in the region’s economy.
See also
Caterpillar Partners with Accenture and Snowflake to Accelerate AI Transformation
EY Reveals 89% of Finance Leaders Prioritize Upskilling Amid AI Evolution
Safaricom Enhances MPesa with AI-Driven Fraud Detection and Payment Innovations
