Data laws, infrastructure gaps slow growth in AI and fintech sectors

Startups face data compliance challenges amid rising demand for local AI and fintech infrastructure. [iStock]

Startups in artificial intelligence and fintech are struggling to process growing volumes of sensitive data while meeting local compliance rules, as gaps in affordable, scalable computing capacity persist.

Kenya’s Data Protection Act requires personal data to be hosted and processed within the country, but many startups face challenges balancing compliance with the need for fast, data-heavy services like machine learning and digital payments.