State pushes for just transition for businesses in AI age to protect jobs

FKE Executive Director Jacqueline Mugo and Vice President of Global Service Delivery at Samasource Annepeace Alwala during the launch of the AI Xcelerate project in Nairobi on February 5, 2026. [Collins Oduor, Standard]

The government has expressed fears of job losses among low-skilled workers as businesses adopt artificial intelligence (AI) in their operations.

While this new age of technology is also expected to create more job opportunities, the government is pushing for responsible and ethical adoption of AI asking businesses to be cognisant of the economic implications.

Dr Wanjiru Kariuki, Secretary for Skills Development at the State Department of Labour and Skills Development noted that AI is rapidly emerging as a transformative force in the labour market.

And with technological progress accelerating, costs falling and more workers acquiring AI skills, Kenya stands on the threshold of an AI revolution.

She pointed out that the government has taken commendable steps to place AI in the national discourse, citing the recently developed AI strategy that seeks to harness the technology effectively.

“One of the greatest risks and the concerns we face is the displacement effects, the risk that routine tasks will be automated leading to unemployment, income inequality and job insecurity especially for low skill roles,” she said.

She said while AI has the capacity to increase productivity, supercharge efficiency and expand output, it should be adopted carefully.

“If we fail to act precisely and decisively, AI will deepen existing inequalities. If we prepare, we can turn this challenge into an opportunity for reskilling, reinvention and inclusion,” she said.

Kariuki said AI is creating new jobs such as in the machine designing and digital innovation space and Kenya must play a role in claiming its position.

We must inspire more young people to pursue careers in AI and related fields,” she said during the launch of the AI Xcelerate programme, a project that is led by the Federation of Kenya Employers (FKE) in partnership with Microsoft. The project provides training to business leaders and managers on AI adoption.

“Employers are at the heart of the economy. If they do not understand what AI is or they do not see the opportunities, it means all these young people getting training on how to use AI will not get jobs,” said Winnie Karanu, AI National Skills Director, Microsoft.

FKE Executive Director and Chief Executive Jacqueline Mugo said across the world, enterprises are integrating AI to improve efficiency, enhance customer expertise and unlock growth opportunities.

She said it has been proven that investing Sh130 ($1) in AI systems in a business could unlock Sh400 ($3.50) in returns.

Kenya however has a challenge with skills.

“This is a challenge we need to address head on,” she said.

She said for Kenya, AI presents a strategic opportunity to boost enterprise productivity, strengthen competitiveness and, reinforce the country’s position as a regional hub for innovation and technology.

Mugo pointed out that many enterprises, especially micro, small and medium enterprises (MSMEs) face hurdles in adoption of AI due to the skills gap and guidance of how to integrate it in their businesses.

“This is precisely the gap the AI Xcelerate project seeks to fill,” she said.