The AI Governance Kenya Needs For Fair Credit Access
Kenya, a nation known for its forward-thinking approach, must now prioritize regulatory coherence, institutional maturity, and a commitment to fairness as it navigates the complexities of Artificial Intelligence (AI) in the financial sector. The country is positioning itself for the global digital economy, underscored by the recent launch of its National AI Strategy, which aims to leverage AI for economic transformation and citizen-focused innovation.
Ensuring Equitable Credit Through Responsible AI
The Central Bank of Kenya’s (CBK) recent Survey on Artificial Intelligence in the Banking Sector provides a realistic assessment of the current state of AI adoption within the Kenyan financial landscape. While the nation demonstrates ambitious policy goals, the survey reveals a gap in institutional readiness. The survey highlights that a significant percentage of lenders are yet to adopt AI technologies. However, among those already using AI, a substantial portion, specifically 65%, employ it for credit risk scoring. This is unsurprising, given that credit decisions are fundamental to trust in the financial system. This widespread use of AI for credit assessment necessitates the development of robust AI governance frameworks to ensure fairness, transparency, and accountability. These frameworks should address concerns about potential bias in algorithms and protect vulnerable populations from unfair credit practices. Effective governance is crucial to prevent AI from exacerbating existing inequalities and to ensure that the benefits of AI-driven financial innovation are accessible to all Kenyans.
Keywords
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