Kenyan Businesses Embrace AI and Automation as Costs Rise

Kenyan businesses are bringing digital technology into their operations, with 71% of firms reporting that they had adopted or upgraded technology over the past year.

According to the Chief Executive Officers (CEOs) Survey released by the Central Bank of Kenya, which examined technology adoption and automation among firms. Only 29% of respondents said they had not adopted the technologies covered by the survey.

Digital payments, automated systems, cloud-based solutions, and AI-enabled tools are among the technologies being taken up by businesses. Some firms have also integrated their systems with e-TIMS and other regulatory platforms.

The changes are largely aimed at improving operational efficiency and customer service, according to the survey.

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Retail and financial services lead adoption

Wholesale and retail trade recorded the largest share of technology, automation and digitization of business processes at 19.7%, with financial services and professional services following at 16.9% and 14.1%, respectively.

A second group comprising healthcare and pharmaceuticals, tourism, hotels and restaurants, and manufacturing each recorded 8.5%, while agriculture stood at 7%.

The figures cover the reported sectoral integration of technology, automation and digitization rather than the proportion of individual businesses using a particular technology.

Artificial intelligence is among the technologies mentioned in the survey, alongside cloud services, digital payments and automation. However, the survey does not give a separate percentage for AI adoption.

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Cost puts brakes on technology plans

For businesses looking to deepen their digital operations, the investment required remains a concern.

High implementation and maintenance costs were among the challenges identified by firms. Skills shortages and difficulties integrating new systems with existing infrastructure are also making adoption harder.

Technology is also changing quickly. The survey points to the need for continuous upgrades linked to developments in artificial intelligence, adding to the demands on businesses that are already investing in digital systems.

Cybersecurity and data privacy concerns remain part of the equation, while internet and network disruptions can affect firms that rely heavily on digital platforms.

Some businesses are also unsure whether the returns from technology investment will justify the money spent.

The survey therefore paints a picture of firms continuing to move towards digital operations while having to weigh the benefits of new technology against the cost, skills and infrastructure required to support it.

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Youths queue for job interviews in Nairobi. PHOTO/NMG