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The Central Bank of Kenya has approved the first AI-powered credit scoring models under its Regulatory Sandbox, allowing startups like Tala and Lendr to use alternative data—including utility payments, e-commerce behavior, and social network analysis—to assess creditworthiness. The models exclude sensitive attributes like ethnicity and gender to prevent bias. Early pilots show 92% accuracy in predicting repayment and 40% higher approval rates for thin-file customers. The CBK says the innovation will expand credit access to 5 million unbanked adults by 2026. All algorithms undergo quarterly fairness audits by the newly formed AI Ethics Board.