AI has key role in securing financial sector

As Kenya accelerates its digital transformation, development finance institutions (DFIs) will be crucial to driving economic growth through accessible and innovative financial solutions.

The shift toward digitalisation and growth of online platforms raises exposure to cybersecurity risks, presenting new challenges to Kenya’s financial ecosystem. 

By adopting artificial intelligence (AI) and embedding robust security architecture into their digital frameworks, institutions can enhance their cybersecurity defences and build operational resilience.

In 2023, Kenya suffered cybercrime losses estimated at $83 million (Sh10.71 billion), according to the 2023-2024 Quarter 4 Cyber Security Report. This saw it ranked among Africa’s most impacted nations, with the financial sector bearing a significant share of these attacks. 

Reducing fraud incidents

For DFIs, the impact of cyberattacks goes beyond financial loss, threatening the stability of critical services that support economic resilience.

The African Development Bank has recognised cybersecurity as essential to economic development, highlighting data breaches as a major obstacle to financial inclusion. Strengthening cybersecurity within DFIs, therefore, aligns with Kenya’s national security interests and broader development goals.

AI brings transformative advantages to DFIs, particularly in predictive analytics and rapid-response capabilities. Using machine learning, DFIs can quickly identify potential attack vectors and adjust security measures in real-time to counteract emerging threats.

AI-driven tools have shown impressive results, reducing fraud incidents by as much as 40 per cent through continuous monitoring of customer behaviour and instant flagging of unusual activities. For the Kenya Development Corporation (KDC), adopting AI-enhanced tools not only fortifies defences against cybersecurity threats but also elevates security standards for clients and stakeholders. 

Enhancing cybersecurity

A security-by-design approach provides Kenya’s financial institutions with a resilient cybersecurity framework that includes embedding encryption, role-based controls, and layered defences in system design. Blockchain’s decentralised ledger and mesh network architecture’s threat isolation demonstrate how resilient design strengthens security.

This approach aligns with global standards, supporting sustainable growth while ensuring long-term security, reliability, and compliance.

Kenya’s path toward digitisation relies on a secure and resilient financial infrastructure capable of withstanding evolving cyber threats. For DFIs, AI and security architecture provide sustainable and powerful tools for enhancing cybersecurity in a cost-effective way.

By prioritizing these technologies, DFIs can support national growth objectives with greater confidence, reinforcing both operational integrity and trust within the sector. 

Mr Limo is the ICT deputy director at Kenya Development Corporation