Artificial Intelligence (AI) is reshaping business operations in Kenya, offering innovative solutions across various sectors. As Kenya continues its digital transformation, AI is becoming an integral part of the country’s economic landscape, enhancing efficiency, driving innovation, and providing businesses with a competitive edge and impacting key sectors in Kenya.
AI in Financial Services
AI’s impact on Kenya’s financial sector is significant, particularly in customer service, fraud detection, and credit scoring. For instance, banks use AI-powered chatbots to handle customer inquiries efficiently. These chatbots are available 24/7, reducing wait times and improving customer satisfaction. According to a report by McKinsey, AI could contribute an additional 2.6% to the annual GDP of African countries like Kenya by 2030, primarily driven by the financial sector.
AI also plays a critical role in enhancing security within the financial sector. Safaricom, through its mobile money platform M-Pesa, uses AI to detect and prevent fraudulent transactions in real time. With M-Pesa processing over 42 million transactions daily, AI’s role in fraud detection has significantly reduced the incidence of fraud, safeguarding billions of shillings.
Furthermore, AI is transforming credit scoring, particularly for individuals and small businesses with limited access to traditional banking services. Companies like Tala and Branch use AI algorithms to analyse non-traditional data, such as mobile phone usage and social media activity, to assess creditworthiness. Tala, for instance, has disbursed over 4 million loans in Kenya, with AI-driven insights enabling the approval of loans to individuals who were previously unbanked.
AI in Agriculture
Agriculture, which contributes about 33% of Kenya’s GDP and employs over 40% of the population, is also benefiting from AI innovations. AI technologies are helping farmers increase productivity and manage risks more effectively. For example, AI-driven tools such as drones and sensors enable precision farming by monitoring crop health, soil conditions, and weather patterns.
Twiga Foods, a Kenyan agri-tech company, uses AI to optimize its supply chain, connecting 140,000 farmers directly with 8,000 vendors. This has significantly reduced food wastage—estimated at 30% to 40% of total production—and improved the efficiency of the distribution process. Moreover, AI-powered predictive analytics help farmers make informed decisions about planting and harvesting, potentially increasing yields by up to 30%, according to the Food and Agriculture Organization (FAO).
AI in Healthcare
The healthcare sector in Kenya is leveraging AI to improve diagnostics, patient care, and administrative efficiency. AI-powered diagnostic tools are used to analyze medical images, such as X-rays and MRIs, enabling early detection of diseases like cancer and tuberculosis. The University of Nairobi, in collaboration with IBM Research Africa, has developed AI algorithms that diagnose eye diseases from retinal images, potentially improving treatment outcomes.
AI is also enhancing access to healthcare through telemedicine. Platforms like Baobab Circle use AI to offer personalized health advice to patients with chronic conditions like diabetes and hypertension, which affect over 50% of the adult population. This allows patients to manage their health more effectively without frequent visits to healthcare facilities.
Challenges and Future Prospects
Despite the promising potential, AI adoption in Kenya faces challenges, including limited infrastructure, a skills gap, and regulatory concerns. The availability of reliable internet and digital devices is still a hurdle, particularly in rural areas where only about 22% of the population has internet access. Furthermore, there is a need for more professionals skilled in AI development and deployment; currently, Africa has only 1,500 active AI researchers, according to a 2021 study by the World Bank.
To address these challenges, the Kenyan government and private sector are investing in education and infrastructure to create an environment conducive to AI innovation. Initiatives like the Kenya National Digital Master Plan aim to accelerate AI adoption and support the country’s digital economy, with a target to increase the digital sector’s contribution to GDP from 7% to 10% by 2025.
Summarily, AI is revolutionizing business operations in Kenya across various sectors, from finance and agriculture to healthcare. While challenges remain, the future of AI in Kenya is bright, with the potential to significantly contribute to economic growth and improve the quality of life for millions of Kenyans. As Kenya continues to embrace AI, businesses that adopt these technologies are likely to thrive in the competitive global market.
