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Home Opinion

Overcoming barriers to AI adoption in Kenyan accounting firms

Malcom Rutere by Malcom Rutere
August 15, 2025
in Opinion
Reading Time: 2 mins read

Artificial Intelligence has proved to be a powerful force which is reshaping industries across the globe. In the accounting profession, AI is automating repetitive bookkeeping tasks, enabling predictive financial analysis, and detecting anomalies that might otherwise escape human attention. In mature markets, accounting firms are increasingly leveraging AI to deliver faster, more accurate, and more strategic services to clients. However, some firms see it as an expensive gamble, fraught with implementation challenges and regulatory uncertainties. Moreover, critics argue that the key deterrents that prevent firms from adopting Artificial Intelligence in their day-to-day operations include high initial investment costs, limited availability of skilled personnel and doubts about data security and compliance under Kenya’s Data Protection Act.

This cautious approach is understandable, especially for small and medium-sized practices operating on tight budgets. However, as global and regional competitors adopt AI-driven processes, Kenyan firms could fall behind, losing efficiency, profitability, and relevance in an increasingly digital economy. However, with targeted strategies that address skills, cost, trust and policy challenges, Kenyan accounting firms can begin their Artificial Intelligence journey without exposing themselves to unnecessary risk which will help them in securing a stronger and more competitive future.

First, bridge the skills gap through targeted training. Shortage of professionals trained to use AI-powered accounting tools has been cited as a major barrier to AI adoption in accounting firms. This can be solved by firms partnering with professional bodies such as the Institute of Certified Public Accountants of Kenya to develop short, practice-oriented AI training modules which will focus on integrating AI into core accounting functions such as audit automation, predictive financial modelling, and compliance monitoring. Second, lower entry costs. AI integration is often viewed as costly when in reality, firms can start small by adopting affordable, cloud-based AI accounting software for specific functions, such as automated invoice processing and bank reconciliation, before moving to more advanced systems.

Strengthening trust with ethical and secure AI practices. Concerns about data privacy and regulatory compliance also deter AI adoption. With sensitive client information at stake, firms need assurance that AI tools meet Kenya’s Data Protection Act requirements. Therefore, firms should partner with technology providers that guarantee secure data storage, transparent algorithms, and compliance with local laws. Establishing an internal AI ethics policy can further reassure clients and regulators. Encouraging policy and institutional support. This can be achieved by offering incentives such as tax deductions for technology investment, AI adoption grants, or subsidized training programs that could accelerate uptake. Regulators can also issue clear guidelines on AI use in accounting, reducing uncertainty and compliance risks.

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Firms that act now to integrate AI will not only streamline operations and reduce errors, will position themselves as forward-thinking partners in a market that is becoming more competitive and technology-driven by the day. In the end, the future of accounting in Kenya will belong to those who see AI not as a threat to tradition, but as a catalyst for evolution. Those who adapt early will shape the standards others will follow.

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Malcom Rutere

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