Banks must seek approval before using AI to reject or approve loans, CBK warns

AI illustration. A 2025 Central Bank survey found that half of all licensed institutions had already adopted AI solutions. [AFP]

In recent years, a majority of Kenyan banks have quietly embedded Artificial Intelligence (AI) into the core of their operations.

A tier-one lender, for instance, uses machine learning models to score borrowers and approve mobile loans at a rate of Sh1.5 billion a day.