AI adoption in the 254⏩
Kenyan lenders are increasingly adopting AI (Artificial Intelligence) to enhance efficiency, reduce risk, and improve customer experience in the financial sector. Here's how they’re using it:
1. Credit Scoring & Risk Assessment
Traditional credit scoring systems rely heavily on formal credit histories. Kenyan fintechs like Tala, Branch, and M-Shwari use AI to analyze alternative data (e.g., phone usage, social media behavior, transaction history) to assess creditworthiness, helping reach the unbanked population.
2. Fraud Detection
AI is used to detect unusual transaction patterns and flag suspicious behavior in real-time, reducing mobile money and digital loan fraud—particularly important with platforms like M-Pesa and digital lenders.
3. Chatbots & Customer Support
Banks like Equity Bank and KCB have deployed AI-powered chatbots to offer 24/7 customer service, helping users with balance checks, loan inquiries, and account information through platforms like WhatsApp or mobile apps.
4. Loan Recovery
AI helps lenders predict which borrowers are likely to default and personalize repayment reminders or restructuring offers to improve recovery rates.
5. Personalized Lending
Machine learning models recommend customized loan products or terms based on an individual’s financial behavior, improving customer satisfaction and reducing default rates.
As AI matures, more Kenyan lenders are expected to integrate it deeper into their operations for smarter, faster, and more inclusive financial services.
