Nairobi, Aug. 2 -- For decades, banks have looked at customers' payslips, account statements, credit histories and collateral to decide if one can repay a loan. Once the money is disbursed, they often have to wait and hope repayments arrived on schedule.

With the increasing adoption of AI technologies such as machine learning, natural language processing and large language models, however, lenders are assessing borrowers beyond the point of approval.

They are using AI to continuously monitor customers, predict financial distress before it becomes visible and intervene long before a loan turns into a non-performing asset.

CBK data shows the banking sector's stock of non-performing loans (NPLs) rose by Sh21 billion in the first quarter o...