Kenya bets Sh152 billion on AI to become Africa's technology hub
Business
By
David Njaaga
| Mar 26, 2026
Kenya has launched a five-year national artificial intelligence strategy, requiring Sh152 billion to position the country as Africa's leading hub for AI research, innovation and deployment.
The National Artificial Intelligence Strategy 2025 to 2030, unveiled recently in Nairobi, sets out a roadmap for AI governance, talent development and sector-wide adoption across healthcare, agriculture, education and public service delivery.
"The question is not whether we shall adopt AI but how we will shape it to keep Kenya future-ready in the global digital economy," said Cabinet Secretary for Information, Communications and the Digital Economy William Kabogo at the strategy's launch.
"AI is changing the nature of work. While some work will be automated, it will also create new job spaces," he added.
The strategy positions Kenya as the 16th African country to adopt a national AI policy, becoming one of the first to introduce a structured, government-led roadmap dedicated entirely to AI governance and adoption.
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It aligns with Vision 2030, the ICT Masterplan 2022 to 2032, and the African Union Agenda 2063, all of which emphasise technology-driven economic growth and improved service delivery.
Kenya's digital base provides a foundation for the plan, but the strategy acknowledges persistent gaps. A shortage of skilled AI professionals’ limits scale, and the Sh152 billion implementation cost, approximately $1.18 billion, presents a financing challenge the government has yet to fully resolve.
The strategy arrives as external capital begins flowing toward the continent.
The UAE announced a $1 billion AI for Development initiative at the G20 summit in Johannesburg in November 2025, to support and finance AI projects in African countries.
The UAE already has digital infrastructure agreements with a number of African countries, including Kenya.
Michael Michie, co-founder and chief executive of EverseTech, said Kenya stands to gain most if the UAE initiative addresses the least-funded parts of the local AI value chain.
"My view is that Kenya stands to benefit most if this initiative helps close part of the AI stack that is still underfunded locally: compute, cloud capacity, and applied public-sector deployment," said Michie, adding, "It can reduce one of the biggest barriers facing startups, researchers, and enterprises alike: affordable access to serious compute."
Michie warned, however, that the country must insist on specific outcomes from any partnership.
"The country should insist on three outcomes: local capability and infrastructure, local control where needed, and local economic spillovers. That is the difference between AI adoption and AI industrialisation. And we want industrialisation," he added.
The strategy's six pillars cover AI digital infrastructure, data governance, research and innovation, talent development, investment and ethics, equity and inclusion.
It was developed in partnership with Germany's Federal Ministry of Economic Cooperation and Development, the European Union through GIZ, Canada's International Development Research Centre and the UK's Foreign, Commonwealth and Development Office.