Kenyan banks reduced their clerical workforce by 5.5 per cent in the year to December, as growing adoption of artificial intelligence (AI) replaced many duties traditionally handled by humans.

The Central Bank of Kenya (CBK) says that while the total number of bank employees increased during the year, clerical positions were the only category to shrink for the second year running.

Total staff rose by 907, or 2.4 per cent, from 37,933 in 2023 to 38,840. However, clerical workers – previously the largest staff category in banks – dropped by 713 to 12,169 from 12,882.

CBK attributes the shift to automation, with half of the banks now reporting the use of AI in their operations. Lenders say the technology has optimised resources, including through “rationalisation of staff.”

According to the Bank Supervision Annual Report, “Management, supervisory, and secretarial and other staff cadres increased by 938, 368, and 314, respectively. Large peer group banks had the largest increase in the total number of staff.”

The report shows that in 2023, clerical positions fell by 0.1 per cent, reversing years of steady growth, which most recently saw a 9.3 per cent jump in 2022.

Management jobs – covering planning, compliance oversight, operational leadership, and coordination – grew by 8.2 per cent to 12,407 from 11,469, making them the largest staff category.

Supervisory roles rose 4.3 per cent to 9,025, while secretarial and other support roles increased 6.4 per cent to 5,239.

Clerical staff typically handle transaction processing, including recording deposits, withdrawals, and transfers, managing documents, and indirectly assisting customers. Many of these tasks are now completed faster and more accurately by AI.

A CBK survey found AI is mainly applied in credit risk assessment, cybersecurity, fraud detection, know-your-customer checks, general risk management, product personalisation, customer service, and anti-money laundering compliance. These areas overlap with clerical duties, reducing the need for manual input.

Banks say AI has improved performance through “better utilisation of staff and systems.”

The decline in clerical roles was expected.

The World Economic Forum, in a 2023 report on AI’s impact on jobs, projected that clerical positions would be among the most affected by automation.

It estimated that up to 81 per cent of tasks handled by clerical officers in banks could be automated, potentially leading to widespread job losses in the sector.