Kenya, December 5, 2025 – A recent survey conducted by the Central Bank of Kenya (CBK) indicates that 65% of banks utilizing artificial intelligence (AI) are employing it primarily for credit risk scoring, making it the most prevalent application of AI within the country’s lending sector. CBK Governor Dr. Kamau Thugge highlighted the operational efficiencies gained through AI, particularly in areas such as credit risk management, cybersecurity, and customer service.
Other notable applications of AI in the banking sector include fraud risk management, digital onboarding, and electronic Know Your Customer (eKYC) processes. However, many financial institutions are still in the early stages of AI adoption. A separate report supported by the CBK reveals that 67% of evaluated financial institutions are classified as “AI immature,” either at pilot stages or lacking basic awareness of AI capabilities.
This lag in adoption could be rooted in concerns surrounding transparency, data governance, and model explainability, challenges that have been raised by the banks themselves during discussions regarding AI integration. In the mobile money sector, Safaricom is undergoing a significant upgrade to its popular MPesa platform, launching a new system dubbed “Fintech 2.0.” This cloud-native platform is AI-embedded and designed for scalability.
At the 2025 Cybersecurity Summit, Safaricom’s CEO, Peter Ndegwa, addressed the collective challenge of cybercrime, stating, “Cybercrime is a challenge no single institution can solve alone.” He disclosed that MPesa is now equipped with real-time fraud detection, risk scoring, predictive monitoring, and “self-healing” systems capable of processing up to 12,000 transactions per second.
Ndegwa further noted that the AI enhancements are yielding tangible benefits, reporting, “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.” Beyond security enhancements, the upgrades to MPesa also introduce features such as tap-to-pay, wallet sharing, and split payment options, which bolster convenience and accessibility for millions of users across Kenya.
For consumers, especially those who have historically been underserved by traditional banking systems, the integration of AI and mobile money upgrades promises easier access to loans, faster payment processing, and improved fraud protection. These advances could significantly broaden the scope of financial services available to the Kenyan public, fostering a more inclusive financial landscape.
As financial institutions continue to navigate the complexities of AI adoption, the collaboration between technology providers and banks will be crucial in overcoming existing barriers. The ongoing developments in AI and mobile money signify a pivotal shift in Kenya’s financial ecosystem, which may transform the country’s approach to banking and financial services in the years to come.
See also
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