AI awakening in Kenya: Building smarter economy Economy Through Innovation and Policy

The Kenya Artificial Intelligence Strategy 2025-2030 seeks to leverage the country’s strengths such as a tech-savvy young population, growing innovation hubs and strong internet infrastructure to grow AI solutions designed to solve local challenges.

According to a Unesco report on the socio-technical AI landscape in the country, Kenya has a shortage of AI expertise and needs to scale up its Information and Communication Technology (ICT) and AI programmes to position itself as a producer of AI rather than remaining a mere consumer.

Special courses

The Kenya Artificial Intelligence Strategy 2025-2030 outlines steps to tackle these issues, including skills development, data management and responsive policy-making.

For many people, especially business executives not in the IT field, the current AI landscape – which is changing rapidly – would have appeared like something out of Star Wars not long ago.

Now universities offer special courses that prepare people from every walk of life, even for non-techies to use AI. One such effort is the AI National Skills Initiative in Kenya, run by Microsoft in partnership with Fast Lane.

The programme is run online, and the courses cater to a wide audience, including marketing, legal and finance professionals. They come with globally recognised Microsoft certification.

Businesses are feeling the impact of AI by deploying tools that help to streamline operations, boost decision-making and create new jobs.

KRA is also advancing digital transformation through tools like e-TIMS and automated Value Added Tax (VAT) checks to improve compliance.

In addition, the Finance Act, 2025 has now amended Section 89 of the TPA to allow remission of penalties orchestrated by a delay in updating electronic tax systems, duplication of penalty or interest due to a malfunction of an electronic tax system, and incorrect registration of tax obligations of a taxpayer.

This is a bold statement of the government support for technology to promote tax compliance.

Kenya's AI journey is not just about innovation, it is about building a smart economy with businesses and regulators evolving together in a digital age.

The writer is a Tax Adviser at KPMG Advisory Services Limited. The views and opinions are those of the author and do not necessarily represent the views and opinions of KPMG. [email protected]