Kenya’s banking industry is on the brink of a major digital transformation, with generative AI poised to reshape customer service, operations, and competition across the sector.

According to new research by Akili AI, the adoption of generative AI in Kenyan banks is still in its early stages but carries immense potential. More than 80% of senior management and board members from leading banks believe AI will be transformative for the industry. However, only 20% of institutions say they are “prepared” or “fully prepared” to embrace it, a figure far below global benchmarks.

To highlight the opportunities, IXAfrica, in partnership with Akili AI, hosted a media briefing at its Nairobi headquarters, showcasing real-world AI applications in finance. Demonstrations included automated customer support in vernacular languages, instant account openings and loan approvals, and AI-driven compliance systems to strengthen regulatory adherence.

The partners noted that the cost of customer acquisition for a fully digital bank can be less than a third of that of traditional banks, while customer management costs can fall to one-fifth. This, they said, presents both an opening for digital-first challengers and a chance for established banks to expand rapidly and launch new services at scale.

Simon Bransfield-Garth, CEO of Akili AI, said, “The AI revolution in banking is not a distant future. Kenyan banks have the opportunity to embrace AI to reduce costs, reach more customers, and innovate in a market that is becoming increasingly competitive with new digital entrants, including AI-native challengers.”

Snehar Shah, CEO of IXAfrica, added, “We have the infrastructure, talent, and market readiness to lead AI adoption in Kenya, but AI is moving at unprecedented speed. Action is needed today, not tomorrow.”

Analysts say digitization in banking could lower the cost of managing cash, boost liquidity, and accelerate economic activity. For customers, the benefits include faster and more convenient access to services anytime and anywhere, reducing time and costs while improving efficiency.

Beyond efficiency, the shift also strengthens financial inclusion. With AI models increasingly trained in local languages, digital banking services are becoming more accessible to underserved communities, helping bridge the financial gap across the country.