Kenya’s banking sector is on the brink of a technological transformation driven by artificial intelligence (AI), with new research from Akili AI indicating that the industry faces a turning point that could redefine competition, profitability, and customer engagement.
According to a survey conducted by Akili AI involving senior management and board members from Kenya’s leading banks, over 80% of executives agreed that generative AI will be transformative for the sector. However, adoption rates remain low, with only 20% of banks saying they are “prepared” or “fully prepared” to integrate AI-driven solutions — a gap that presents both challenges and opportunities for traditional financial institutions.
The research highlights the growing threat posed by AI-native digital banks, which are entering the Kenyan market with dramatically lower operating costs and faster deployment capabilities.
Findings from Akili AI and iXAfrica Data Centres show that:
- The cost of customer acquisition for fully digital banks is less than one-third that of traditional banks.
- Customer management costs can be under one-fifth compared to conventional banking models.
These figures underscore the urgency for established banks to innovate, digitize services, and leverage AI to maintain competitiveness in an increasingly dynamic market.
While the immediate focus is on financial services, Akili AI notes that AI has far-reaching implications for other sectors, including:
- Healthcare — enabling faster diagnoses and treatment optimization.
- Education — supporting adaptive learning platforms.
- Government services — streamlining public administration.
- Retail — personalizing customer experiences and optimizing supply chains.
In the financial sector specifically, AI promises to reduce the cost of holding and managing cash, improve liquidity, and accelerate economic activity across Kenya.
At an event hosted at iXAfrica’s Nairobi headquarters, Akili AI and iXAfrica showcased next-generation AI applications designed for the banking sector, including:
- Automated customer service in Kenyan vernacular languages.
- Instant account opening and loan approvals — reducing processing time from days to minutes.
- AI-powered compliance tools to enhance regulatory adherence and risk management.
“The AI revolution in banking is not a distant future, it’s happening now,” said Simon Bransfield-Garth, CEO of Akili AI.
“Kenyan banks have a unique opportunity to leverage AI to reduce costs, reach more customers, and accelerate innovation — but they must act fast as digital-first challengers emerge.”
Snehar Shah, CEO of iXAfrica, added:
“Kenya has the infrastructure, talent, and market readiness to lead Africa in AI adoption. But AI is evolving at unprecedented speed — the time for companies to act is today, not tomorrow.”
Akili AI is a leading African AI solutions provider helping businesses deploy advanced artificial intelligence to enhance efficiency, accelerate innovation, and drive sustainable growth. The company focuses on responsible AI transformation, delivering tailored solutions in areas such as customer onboarding, loan processing, compliance, and customer care.
iXAfrica Data Centres operates East Africa’s first hyper-scale, AI-ready data centre in Nairobi. The Nairobi One Campus offers 22.5MW of capacity and supports high-density AI workloads of up to 50kW per rack, powered largely by Kenya’s renewable energy sources. iXAfrica provides world-class colocation, cloud, and connectivity solutions to meet the region’s growing digital infrastructure demands.
