Kenya’s banking sector has seen significant job changes as banks adopt artificial intelligence (AI) with over 700 clerical staff losing their jobs in the year to December 2024. According to a recent report from the Central Bank of Kenya (CBK), clerical positions were the only category to decline, as AI takes over manual tasks.
AI is killing Clerical Jobs
AI is changing industries globally and Kenya’s banking sector is not spared. The integration of AI in banking has seen a 5.5% decline in clerical staff. Despite this, the total number of bank employees increased by 2.4% from 37,933 in 2023 to 38,840 in 2024. But the decline in clerical roles was significant with clerks dropping from 12,882 to 12,169—a reduction of 713 staff.
According to Allan Lwala, a cyber and information security consultant, AI is revolutionizing the workplace. “We are in the automation revolution,” Lwala said. “Just like in previous industrial revolutions, people adapted to technology—farmers lost jobs to tractors and now a fleet of combine harvesters can be operated by a single person from a control room.” Lwala advises job seekers to upskill and work with AI as it displaces jobs but also creates new opportunities in tech fields.
AI adoption in Kenya’s banking sector has been growing with 50% of local banks reporting to have adopted AI technologies by 2024. This has optimised resources and improved efficiency. Banks are using AI for tasks such as customer service automation, transaction processing and fraud detection—tasks that were previously done by clerical staff.
Interestingly, while clerical staff numbers have declined, other roles have grown. Management, supervisory and secretarial staff numbers increased with 938 more management positions, 368 supervisory roles and 314 secretarial positions. Large group banks saw the biggest increase in staff as these institutions are investing heavily in AI and other technological solutions.
AI and Employment and Job Creation
While the decline in clerical jobs is worrying, Lwala noted that AI is also creating new jobs in fields such as cybersecurity, data analysis and AI system management. As AI evolves, the demand for professionals who can develop, manage and work with these systems will grow.
Lwala advises individuals to be adaptable and upskill to remain relevant in the fast changing job market. “AI is here to stay and while it may eliminate some jobs, it will also create many more in emerging fields,” he said.
The job losses aren’t limited to the banking sector. Many other sectors in Kenya are feeling the pinch of global economic pressures including geopolitical tensions, inflation and high interest rates. The Federation of Kenya Employers recently reported that the country is experiencing widespread job cuts especially in businesses hit hard by Kenya’s tax policies.