Kenya’s Artificial Intelligence (AI) sector received a substantial boost in 2023, securing $15 million (Sh1.95 billion) in funding, according to a new report by the Global System for Mobile Communications Association (GSMA). This impressive figure places Kenya ahead of Nigeria, which garnered $2.9 million (Sh377.9 million) for its AI sector. However, both nations trail behind South Africa, where AI investments reached $123 million (Sh16.02 billion).
The GSMA report highlights that African tech startups collectively attracted around $4 billion in investments in 2023, with Kenya, South Africa, Nigeria, and Egypt receiving the majority of this funding. Despite this influx, AI investments still represent a small fraction of the total tech investments across the continent. This underscores the growing, yet still developing, interest in AI technologies in Africa.
Kenyans are increasingly leveraging AI to enhance their businesses and everyday activities. AI, which enables machines to mimic human intelligence and solve complex problems, is being utilized across various sectors including healthcare, manufacturing, and the military. The report indicates that in Kenya, AI is predominantly applied in agriculture, with machine learning tools providing farmers with data-driven insights to boost productivity.
According to the GSMA report, 49 percent of AI deployments in Kenya are focused on agriculture and food security. This is followed by climate action at 26 percent and energy use cases at 24 percent. These figures highlight the critical role of AI in addressing some of Kenya’s most pressing challenges and driving sustainable development.
In response to the rapid growth of AI, Kenya has established a 21-member committee tasked with formulating a policy framework for AI use. This team will identify legal gaps in areas such as cybercrimes and computer misuse, aiming to create comprehensive regulations to ensure the secure and ethical deployment of AI technologies. This move is crucial as Kenya, like many other countries, grapples with concerns over data security and the impact of AI on the labor market.
The private sector is at the forefront of AI adoption in Kenya, with experts emphasizing the importance of transparency in AI solutions to build trust and drive widespread adoption. The International Monetary Fund (IMF) has noted that 40 percent of global employment is susceptible to AI disruptions, underscoring the need for robust policies and frameworks to manage the integration of AI into various industries and protect the workforce.
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