The Central Bank of Kenya published findings from its Survey on Artificial Intelligence in the Kenyan banking sector, assessing AI adoption, use cases, risk management and governance practices across regulated and supervised institutions. The report shows AI is already in use across a significant share of the market but with uneven maturity and gaps in strategy, policy frameworks and controls, and it confirms the Central Bank has started developing guidance on AI. The survey collected data as at December 31, 2024 from 37 commercial banks, one mortgage finance institution, 14 microfinance banks, three credit reference bureaus and 70 digital credit providers. Half of respondents reported adopting AI, while all credit reference bureaus reported not using AI; among adopters, the most common applications were credit risk assessment (65 percent), cybersecurity (54 percent) and customer service (43 percent), followed by electronic Know Your Customer (41 percent) and fraud risk management (40 percent). Governance readiness was mixed, with 30 percent of respondents reporting an AI strategy, 41 percent of AI adopters reporting AI policies, and 51 percent reporting dedicated data or AI teams; 68 percent of AI adopters reported using generative AI tools. Reported risks were led by data quality, governance and management (59 percent), cybersecurity (54 percent), limited AI-skilled staff (52 percent), third-party dependency (52 percent) and AI governance risks (51 percent); 56 percent of AI adopters reported measures for explainability and 56 percent reported auditability mechanisms, while 73 percent reported equitable customer access to AI model benefits. The report records broad support for supervisory direction, with 93 percent of institutions recommending the Central Bank issue AI guidance, covering governance and compliance (including data governance, transparency and fairness, and third-party model use), risk management frameworks and incident management and reporting. The Central Bank reports it has embarked on the process of developing this guidance for the banking sector.
Central Bank of Kenya 2025-03-07
Central Bank of Kenya publishes AI survey showing 50 percent adoption and starts developing sector guidance
The Central Bank of Kenya's survey on AI in banking highlights adoption, use cases, and governance. The report shows significant AI usage with uneven maturity and strategy gaps, noting the Central Bank's development of AI guidance. Key applications include credit risk assessment, cybersecurity, and customer service, with data quality and governance as primary risks.