From AI pilots to profits: Kenya’s businesses face test of measurable returns

NAIROBI, Kenya, Aug 25 — Artificial intelligence is penetrating deeper into Kenyan businesses, yet the next stage of adoption will likely be measured by the ability to generate tangible returns rather than the number of companies utilizing the technology. The focus is shifting from whether Kenyan businesses are using AI to how it is transforming their operations.

Recent data indicates that Kenyan companies have rapidly embraced AI, deploying it in areas such as customer service, software development, marketing, credit scoring, fraud detection, and more. However, the gap between incorporating AI and scaling it across an organization remains substantial. A 2025 survey revealed that while 96% of organizations had started their AI journey, only 35.2% had achieved widespread or advanced implementation.

A significant barrier to progress is the lack of technical expertise, cited by 48.8% of respondents. Customer service has emerged as the top area for AI investment, followed by software development and marketing optimization. Despite the progress, the crucial question remains: can companies effectively integrate AI to produce measurable business value?

For smaller enterprises, AI is lowering the cost of accessing capabilities that typically required specialized teams or significant investment. Abraham Mbuthia, CEO and co-founder of UzaPoint, highlights how AI accelerates tasks that previously took months or years. With AI tools, information can now be gathered and a website can be created within days, significantly reducing the time and effort required.

Additionally, AI narrows the gap between smaller businesses and larger firms by providing them with similar capacities. For smaller firms, this accessibility alters the economics of technology adoption. Instead of investing in expensive infrastructure or maintaining large teams, businesses can increasingly leverage existing software, cloud platforms, or external vendors for AI capabilities.

However, lower barriers to entry do not guarantee a return on investment. To truly benefit from AI, it must enhance the economics of an operation, making processes faster, cheaper, more accurate, or capable of generating additional revenue. The financial sector serves as a prime example of AI transitioning from experimentation to core business functions.

Financial institutions are leveraging AI and machine learning for credit-risk assessment, cybersecurity, customer service, electronic know-your-customer processes, and fraud-risk management. Notably, credit scoring, fraud detection, and personalized customer engagement have become leading areas of AI integration. However, CBK has identified critical gaps such as data quality, governance, management, scarcity of skilled personnel, and compliance requirements as significant challenges to broader AI adoption.

The banking example underscores that while AI can reduce transaction costs, errors can lead to substantial financial, legal, and reputational consequences. This illustrates a broader lesson for Kenyan businesses: AI becomes more valuable as it is integrated into core operations, but the risks rise when it influences high-stakes decisions.

In manufacturing, the situation presents a different challenge. Tobias Alando, CEO of the Kenya Association of Manufacturers, notes that local companies are increasingly investing in software technology to support manufacturing operations. However, direct AI-led production remains challenging due to the high costs of machinery and AI technology.

The cost of adopting AI-enabled industrial automation can be prohibitive for developing countries like Kenya. While software-based AI can be accessed through affordable cloud services and enterprise applications, the capital requirements for AI-driven manufacturing are significant. For manufacturers operating under tight margins, the financial burden may make full-scale adoption difficult. Nonetheless, AI is becoming a crucial factor in maintaining competitiveness in the global market.