Data privacy: Building trust in Kenya’s financial services in AI era

This week, Kenya joined the global community in marking Data Privacy Week under the theme: Trust the Data; Drive the Future, setting a clear tone that for Kenya’s digital economy to thrive, citizens must have confidence that their personal information is collected, stored and used responsibly.

This theme featured prominently at the recent Data Privacy Conference in Mombasa, where experts examined how artificial intelligence is reshaping decision-making across sectors.

While AI offers immense opportunities, discussions emphasised the need for strong governance, ethical safeguards, and robust cybersecurity controls. Without these, the very technologies designed to drive growth risk undermining public trust.

This debate is urgent in Kenya’s financial services sector. Banks, insurers, digital lenders, employee benefits platforms and fintechs collect vast volumes of personal and transactional data every day. When used responsibly, this data can drive innovation, improve customer experience, expand financial inclusion, and support economic growth. When misused, it can erode confidence and weaken the financial system.

Kenya’s rapid digital adoption highlights both opportunity and risk. According to the latest FinAccess Household Survey, more than half of Kenyan adults now use mobile money daily, up from 23.6 per cent in 2021.

Over 14.8 million adults rely on formal banking services, with commercial banks serving the majority and microfinance institutions accounting for the rest. Together, these trends place Kenya among the most digitally enabled financial markets globally.

Data from the Retirement Benefits Authority indicates that at least 7.6 million Kenyans are saving for retirement out of an estimated working population of 29 million. In addition, more than 24 million Kenyans now have some form of insurance cover. This scale of participation underscores the volume of sensitive personal data being generated and managed across the financial services ecosystem.

However, growth brings responsibility. Data breaches, unauthorised sharing of information or unclear use of customer data can have serious consequences for individuals and institutions alike. As financial services become more digital, these risks are increasing in scale and sophistication.

The Communications Authority of Kenya has reported a rise in AI-powered cyber threats, with criminals using artificial intelligence to automate phishing attacks, impersonation, and malware deployment. The Authority estimates that AI-related cybercrime accounted for 40 to 50 per cent of the more than 840 million cyberattacks reported in 2024. These threats directly undermine trust in Kenya’s digital financial platforms.

This reality reinforces a simple truth that Kenya’s digital financial ecosystem is only as strong as the trust it inspires. Institutions handling sensitive financial and personal data must treat data protection as a strategic priority, not just a compliance requirement. A single breach can damage reputations, slow adoption of digital services, and reverse gains in financial inclusion.

Strong governance, ethical data stewardship, and transparency must therefore sit at the centre of Kenya’s financial system. Customers deserve clarity on how their data is used, why it is collected, and how it is protected.

Responsible data management is a powerful driver of inclusion and empowerment. When handled ethically, data enables institutions to design tailored products, reach underserved communities, and lower the cost of delivering financial services. Trustworthy data use transforms information into a tool for shared prosperity.

Effective data stewardship rests on three pillars. Protecting data integrity and security, maintaining transparency and accountability, and using data to drive innovation that supports inclusive growth. Achieving this will require collaboration among players, including the regulator, financial institutions and technology providers, alongside sustained investment in systems that embed privacy and security by design.

Davis Ongiro is the CEO of Octagon Africa, a regional financial services firm offering employee benefits, insurance brokerage, trusts, and training to clients across the public, private, and non-profit sectors.