Kenya is planning to criminalise the deployment of “high-risk” artificial intelligence systems without state approval, targeting tools used in credit scoring, biometrics, and health diagnostics. The draft Artificial Intelligence Bill 2026, sponsored by Senator Karen Nyamu, proposes fines of up to KES 5 million ($38,000) or jail terms of up to three years for violations, a move that could slow AI product launches and raise legal stakes for startups.
The bill comes as AI adoption surges across Kenya, with systems increasingly influencing loan approvals, hiring decisions, fraud detection, and customer service. By placing these high-impact tools under potential state oversight, the legislation aims to ensure accountability where AI directly affects access to money, jobs, and services.
A central challenge for founders will be defining what counts as “high-risk” AI. A broad interpretation could cover applications in finance, health, education, and even general-purpose models integrated into local apps. The proposal also extends personal liability to company directors, meaning executives who approve deployments could face criminal consequences.
The legislation envisions the creation of an AI commissioner tasked with classifying systems, granting approvals, maintaining a public register, and inspecting data, models, and related records. The regulatory framework goes beyond civil penalties, making Kenya one of the few markets where criminal law could enforce AI oversight, unlike regions such as the European Union or the United Kingdom, where enforcement relies largely on audits and administrative fines.
Tech legal expert Mike Olukoye said tighter controls are crucial as AI systems increasingly influence critical decisions. “Early oversight is needed to limit harm before it scales,” he told TechCabal, highlighting the delicate balance Kenyan startups will need to strike between compliance, innovation, and the protection of proprietary data.