Artificial Intelligence (AI) offers immense promise for fiscal management.
So says Dr Chris Kiptoo, Kenya’s principal secretary, National Treasury, who spoke at the recent Macroeconomic and Financial Management Institute (MEFMI) forum in the United States.
Kiptoo noted that across the world, governments are leveraging AI to strengthen revenue forecasting, expenditure tracking, debt management, and compliance monitoring.
He said: “In Kenya, we see the potential of AI to enhance fiscal efficiency and transparency from improving tax administration and detecting anomalies in public spending to supporting evidence-based budgeting.
“With accurate, real time data analytics, policymakers can better align fiscal decisions with economic realities, reducing leakages and optimizing resource use.”
According to Kiptoo, Kenya has already taken significant steps toward digital transformation in public finance.
He explained: “Through the Integrated Financial Management Information System, we have digitised procurement, payments, and expenditure tracking processes. We are now exploring how machine learning tools can further enhance forecasting accuracy and detect fiscal risks earlier.
“I participated as a discussant at the 2025 MEFMI Combined Forum, held in Washington, D.C., alongside the IMF and World Bank Annual Meetings, where I shared Kenya’s journey, opportunities, and challenges in leveraging AI for fiscal management.
“The Forum, themed “Artificial Intelligence in Macroeconomics,” provided a timely platform to explore how AI can be applied to strengthen fiscal management, monetary policy, and the financial sector across our region.”
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