Mobile banking fraud in Kenya has surged by 344 percent in recent years, costing the industry more than KSh 810 million. At the same time, over 80 percent of adults now rely on mobile money services, making the country a global pioneer in mobile-first finance.
Within this landscape, KCB Group, East Africa’s largest commercial bank by assets, has launched a revamped mobile banking app in Nairobi, signalling a significant leap in its digital transformation strategy.
The rollout combines artificial intelligence, biometric security, and privacy by design to deliver faster, safer, and more customer-friendly services.
The launch was discussed on Ali Talks Tech in a wide-ranging interview hosted by Ali Hussein Kasim, featuring Harris Kamuri (Head of Engineering), Dennis Volemi (Group Director of Technology), and Rosemary Kimatu (Head of Data Protection).
The executives underscored that the new app is built to tackle Kenya’s growing mobile fraud problem while positioning KCB at the centre of Kenya’s fintech growth and the future of East Africa’s digital banking.
KCB Bank overview and history in Kenya’s fintech landscape
Founded in 1896 as the National Bank of India in Mombasa, KCB has grown into a powerhouse of East Africa digital banking. It operates in seven countries today, with total assets surpassing KSh 1.97 trillion (USD 15 billion) and over 20 million customers. Since going public in 1988, KCB has evolved beyond branches, with 99 per cent of transactions now happening on digital channels.
The new mobile app reflects this shift. Available on Google Play, Apple App Store, and Huawei HarmonyOS, it integrates bill payments, lending, investments, and biometric authentication into a single platform. For KCB, the project is about convenience and securing its role in a region where mobile-first banking is transforming access to finance.
Agile tribes and squads: How KCB builds digital banking products
At the heart of the app’s development is KCB’s adoption of agile “tribes and squads”, which Allows cross-functional teams — from engineers to risk managers — to co-create products.
According to KCB executives, this approach enables faster innovation while embedding compliance and risk management into every product design stage. Leadership also sees technology as more than a support function — instead, it is now as a core driver of profit and customer growth.
This shift is central to KCB’s push to compete with nimble fintech startups while retaining the trust associated with an established bank.
Digital security challenges: SIM swapping and social engineering
Kenya’s mobile-first market has spurred innovation and fraud. According to industry data, mobile banking fraud has risen by 344 percent in recent years, with losses amounting to over KSh 810 million. The most common threats are SIM swapping and social engineering attacks.
KCB executives note that first-time onboarding on the new app requires mobile data to validate SIM ownership, a step intended to prevent fraudsters from activating accounts with stolen details. After onboarding, customers can use Wi-Fi normally.
To counter SIM swaps, KCB collaborates with telcos such as Safaricom to flag suspicious activity, requiring affected customers to verify their identity in-branch. While less convenient, the measure helps safeguard accounts.
Social engineering, where fraudsters manipulate victims into sharing OTPs or personal details, is considered a tougher challenge. Here, the bank relies on layered technical defences alongside ongoing customer education, stressing that vigilance remains critical since liability issues arise when customers voluntarily disclose credentials.
AI-powered onboarding and regional expansion in East Africa digital banking
The revamped app slashes onboarding times, with most customers able to open an account in just four to six minutes. Using AI-powered optical character recognition, facial biometrics, and liveness detection, KCB verifies identities without branch visits in 80 percent of cases. For the remaining 20 percent, manual verification is done within 24 hours.
Executives highlight that this streamlined process is vital as KCB expands across East Africa. Subsidiaries outside Kenya already contribute more than a third of group profits, and the new platform is being rolled out in Tanzania, Burundi, South Sudan, and beyond. Localisation — from regulatory compliance to language options — ensures the app can scale across diverse markets.
They also observe that Kenya and its neighbours are “leapfrogging” traditional banking by going mobile-first. For KCB, the focus is on delivering consistent, secure, and innovative services while tailoring features to local contexts.
Data protection regulations and privacy by design
Kenya’s Data Protection Act (2019), modelled on the EU’s GDPR, requires banks to embed consent, transparency, and privacy by design. Non-compliance carries penalties of up to KSh 5 million.
KCB executives emphasise that compliance is now treated as a strategic advantage rather than just a legal requirement. Customers are increasingly aware of how their data is used, and the bank sees transparency as a competitive differentiator.
This shift has led to closer collaboration between engineering and compliance teams, ensuring that privacy is integral to app design.
The rise of global privacy concerns — from scandals involving tech giants to local unease about data misuse — has elevated digital trust to the core of KCB’s strategy. By investing in privacy by design, the bank aims to reassure customers that their financial and personal data remain secure.
The future of Kenya fintech and East Africa digital banking
remains a trailblazer in fintech, with over 80 per cent of adults using mobile money services such as M-Pesa. By 2028, the region’s fintech market is projected to grow at a 14.1 per cent CAGR, fuelled by digital payments, open finance, and AI-driven personalisation.
KCB is investing in this growth through embedded finance, youth-focused products, and partnerships with fintech players. Executives point out that the combination of AI, biometrics, and agile product delivery is expected to define the next phase of East Africa’s digital banking.
The bank’s leadership also stresses three priorities: iterative product development driven by customer feedback, privacy as a differentiator for trust, and technology leadership as a central growth strategy. These factors shape how KCB intends to lead the region’s fintech future.
Building trust in the future of East Africa’s digital banking,
KCB’s new mobile app is a statement about the future of banking in Kenya and the wider region. By combining security, privacy, and customer-centric innovation, the bank is positioning itself at the centre of Kenya’s fintech ecosystem while scaling across East Africa.
The challenges of SIM swapping and social engineering remain real, but KCB’s layered approach shows how banks can balance convenience with safety. As regulatory demands tighten and customer expectations grow, digital trust will remain the currency that defines winners in the next chapter of East Africa digital banking.