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

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

✨ Key Highlights

The Central Bank of Kenya (CBK) has issued a warning to banks, stating that they must obtain explicit approval before utilizing Artificial Intelligence (AI) for loan rejection or approval processes.

A 2025 survey revealed that half of all licensed institutions have already integrated AI solutions.
The CBK is the key organization issuing the directive.
One tier-one lender reportedly uses machine learning to approve mobile loans at a rate of Sh1.5 billion daily, highlighting the existing AI integration in the sector.

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