Spinmobile CEO Victor Kiplagat during the CEO's breakfast forum in Nairobi on August 13, 2026. [Benard Orwongo, Standard]
Kenya’s financial sector is increasingly using Artificial Intelligence (AI), alternative data and cloud computing to change how credit is assessed and provided. Industry players say data could become a new form of collateral, helping millions of people who currently struggle to access loans.
The shift could especially benefit small and medium-sized enterprises (SMEs), which often find it difficult to get formal credit because they lack traditional collateral such as property and other physical assets.
Speaking during a forum that brought together chief executives from commercial banks, microfinance institutions, digital lenders and Saccos, Spinmobile chief executive officer Victor Kiplagat said financial institutions should use technology more effectively to make better lending decisions, reduce risks and increase access to credit.
He said SMEs such as small traders, boda boda operators and barbers may not own traditional collateral, but their daily transactions generate valuable data. This information can help lenders understand their financial behavior and assess whether they can repay loans.
“Data is the new collateral. Alternative data, AI and big data could be used to develop a clearer picture of a borrower’s financial capacity and character,” Kiplagat said,