Executive Summary

Kenya unveiled its National AI Strategy 2025–2030 on 27 March 2025, establishing a structured framework to harness artificial intelligence (AI)-driven innovation for socio-economic development. Centered on three pillars — AI Digital Infrastructure, Data, and AI Research & Innovation — the Strategy marks a pivotal, proactive step in the country's digital transformation journey and provides a forward-looking framework in addressing regulatory uncertainty and responsible innovation. For legal and business stakeholders, this development signals a more predictable, enabling environment for AI investment, compliance and cross-sector collaboration.

Legal and regulatory landscape for AI governance in Kenya

The National AI Strategy points out that Kenya lacks a dedicated AI legal framework, relying on data protection laws, sectoral policies and proposed regulations, such as the Kenya Robotics and AI Society Bill (2023) and the Draft IT Artificial Intelligence Code of Practice (2024). Kenya also has in place the 10-year National Digital Master Plan (2022–2032), which outlines AI's transformative potential but highlights the need for regulatory clarity and structured oversight. To address this, the National AI Strategy sets out key action points for the development of Kenya's AI regulatory framework, including:

• Reviewing sectoral laws (employment, intellectual property, cybercrime) to align with AI governance
• Harmonizing East and Central Africa's digital, tax and cybersecurity laws for cross-border data compliance
• Implementing a soft AI regulatory framework to balance innovation while enhancing safeguards
• Developing AI and emerging technology legislation as AI adoption matures
• Leveraging regulatory sandboxes to refine AI governance and compliance standards

These efforts signal Kenya's aim to gradually implement AI-specific regulations, ensuring a legal environment that supports responsible AI adoption while fostering innovation and market competitiveness. Key players should therefore be on the lookout for regulatory developments in the AI sector over the next five years.

At the regional level, Kenya's National AI Strategy aligns with the African Union's (AU's) AI Continental Strategy, launched in June 2024, which aims to leverage AI's transformative potential to accelerate socio-economic growth and development across Africa.

Potential opportunities for AI investors and industry players

Kenya's strategy presents opportunities for AI stakeholders by reducing regulatory uncertainty, encouraging investment and strengthening industry collaboration. By aligning with regional and global AI governance trends, Kenya aims to create a thriving AI ecosystem with access to skilled professionals, research partnerships and regulatory predictability. Key beneficiaries include the healthcare, security, fintech, education and agriculture sectors, where AI solutions can drive efficiency, enhance service delivery and generate new economic opportunities.

For businesses deploying AI, Kenya's evolving legal landscape requires proactive engagement in policy discussions, risk mitigation strategies and compliance with emerging governance frameworks. As AI standards develop, organizations will have the opportunity to shape policy direction, integrate ethical AI and maintain competitiveness in Africa's AI market.

National AI policy value proposition

The strategy seeks to promote economic growth through AI-enabled productivity, revenue generation and enhanced government service delivery. While acknowledging potential job disruptions, it prioritizes digital job creation, ethical AI use and governance strengthening. By fostering an inclusive and structured AI environment, the strategy aims to position Kenya as a leading AI hub, ensuring global partnerships and scalable AI adoption.

Next steps for AI stakeholders

Kenya's AI strategy is gradually evolving toward formal regulatory implementation, and businesses must stay ahead of policy developments to ensure compliance and strategic alignment. AI stakeholders should proactively engage with regulators and industry bodies, providing input on AI liability frameworks, ethical deployment standards and cross-border governance alignment. Companies operating in Kenya must assess their legal obligations, adapting their AI models to future regulatory requirements while considering leveraging government-backed incentives for responsible AI adoption. Participation in public-private AI collaborations should help shape a balanced regulatory environment and help ensure that Kenya's AI ecosystem remains both innovative and legally sound.

For those who would like to learn more about these developments and their practical implications, EY Law will be hosting a webinar on this topic in November 2025. For more details and to register, send an email to Deborah.Moragwa@ke.ey.com or any of the Kenya contacts listed below.