Financial institutions across Kenya have been urged to embrace emerging technologies such as artificial intelligence (AI) and modern credit scoring systems to strengthen lending processes and widen access to credit as the country’s financial sector continues to evolve.

Speaking during a financial sector engagement forum on Thursday night, May 21, 2026, held in the North Rift region, industry stakeholders said the annual event seeks to bring critical discussions and innovations in finance closer to regional institutions, equipping them with tools to navigate an increasingly dynamic financial environment.

The forum, which brought together lenders, savings and credit cooperatives (SACCOs), digital credit providers, and business leaders, focused on helping financial institutions leverage AI-powered solutions and modern credit scoring mechanisms to improve credit appraisal, customer engagement, and financial inclusion.

According to stakeholders, approximately 26 million Kenyans currently have credit profiles within the Credit Reference Bureau (CRB) system, reflecting a major shift from the traditional notion of “blacklisting” borrowers toward a more inclusive credit rating framework.

“We no longer talk about blacklisting. We are now in the age of credit scores and credit ratings,” said Gideon Kipyakwai, Chief Executive Officer of the Credit Reference Bureau (CRB). “Borrowers can now use their credit profiles and scores to access financing opportunities.”

Kenyans’ rise

Kipyakwai noted that Kenya has emerged among the top five countries globally in financial inclusion, attributing the progress largely to the role played by CRBs, advancements in mobile money technology, and lending application programming interfaces (APIs) that have expanded access to financial services.

The financial sector has also witnessed a significant increase in borrowing since the COVID-19 pandemic. Data presented during the forum showed that an additional seven million borrowers have joined the credit ecosystem in recent years, with approximately 3.7 million added in the last year alone through digital credit providers.

Stakeholders credited recent regulatory reforms, particularly regulations governing digital credit providers, for supporting Kenya’s financial inclusion agenda and strengthening access to affordable credit.

Officials clarified that credit scoring is conducted exclusively by CRBs and not lenders. Borrowers can check their credit scores through the *433# USSD service, with ratings determined based on data submitted to licensed credit bureaus.

Concerns regarding unregulated lenders sharing customer information with CRBs were also addressed during the discussions. Officials explained that in 2020, the Central Bank of Kenya removed unlicensed lenders from the system and required them to seek licensing approval.

Currently, 227 digital credit providers have been approved by the Central Bank of Kenya, meaning only accredited institutions meeting specific data quality standards are allowed to share borrower information with CRBs.

Victor Kipragat, Chief Executive Officer of Spin Mobile, emphasized the growing role of technology in reshaping financial services, noting that innovations such as AI, alternative data, and embedded finance are transforming how institutions assess borrowers and deliver financial products.

Financial systems

Participants observed that financial systems and credit scoring frameworks continue to evolve, driven by technological innovation and changing consumer needs.

The forum also provided an opportunity for financial institutions to explore how digital technologies can improve lending decisions, customer outreach, and operational efficiency.

Kenya National Chamber of Commerce

Albert Serem, Vice President of the Kenya National Chamber of Commerce, urged entrepreneurs to formalize their businesses to increase their chances of securing financing.

“We encourage business people to formalize their businesses by opening bank accounts, registering business names, and adopting proper banking channels,” Serem said. “This will make credit scoring easier and help lenders track business records more effectively.”

Stakeholders expressed optimism that continued collaboration between regulators, financial institutions, and technology providers would further strengthen Kenya’s financial ecosystem and enhance access to credit for individuals and businesses.