Emerging Tech in Kenyan Businesses

Executive Summary

In order to boost productivity and innovation in sectors including banking, healthcare and agriculture, the Kenyan government has aggressively promoted AI through programs like the National AI Strategy. Applications of AI include individualized learning in education and fraud detection in banking. Blockchain is being investigated at the same time to improve efficiency and transparency in industries including public services and supply chain management. Because smart devices increase operational efficiency and resource management, the Internet of Things is becoming more and more popular in the fields of agricultural and urban planning. These technologies, taken together, are positioned as major forces behind Kenya's economic expansion and social advancement, supporting the nation's Vision 2030 aspirations to become Africa's preeminent technology hub.

Introduction and Background

The extensive application of blockchain, AI and IoT in developing countries is still in its infancy, so a more thorough assessment employing effective and flexible methodologies is required. This study will evaluate the advancement of blockchain, AI and IoT in Kenya and Africa, highlighting the need for comprehensive research to fully utilize these technologies for improved operational effectiveness and competitiveness.

Data and Analysis

Businesses that use AI, Blockchain or IOT

1. Safaricom: Enhances mobile money transfers security by monitoring transactions and detecting fraudulent activities.
2. Tala: Uses AI algorithms to evaluate creditworthiness, providing microloans to underserved populations.
3. UjuziKilimo: Provides real-time agronomic advice to smallholder farmers via sensors.
4. Ilara Health: Makes diagnostics more accessible and affordable by providing tech-powered diagnostic equipment at affordable prices.
5. Lori Systems: Optimizes cargo transportation across East Africa, improving delivery efficiency and reducing costs.
6. M-Shule: Delivers personalized and adaptive learning to primary school students using AI and SMS.
7. Crystalapp Technologies: provides AI-enabled Business Intelligence and data analytics for MSMEs in Africa.
8. BimaTek Insurance: offers an InsurTech and Fintech platform, Automating online and paperless Insurance processes for clients, agents and insurance companies.

Key Findings

Barriers to adopting Ai, block-chain or IOT

1. Scalability Issues:

• Decentralized consensus mechanisms struggle with high transaction volumes, leads to bandwidth limitations, high transaction costs and energy inefficiencies.
• Hinders blockchain-based IoT systems from handling vast data and supporting real-time AI processing.

2. Security and Privacy Concerns:

• Complex security requirements for data, contracts, devices and networks.
• Need for robust privacy measures, such as zero-knowledge proofs, to protect sensitive data.

3. Interoperability Barriers:

• Lack of standardization across platforms complicates communication between different blockchain systems and IoT devices.

4. Regulatory Uncertainties:

• Absence of clear regulations surrounding digital currencies, data ownership, and privacy creates legal ambiguities.

5. Technical Complexity:

• Intricate nature of technologies poses barriers to user acceptance and adoption.
• Necessitates education and training for effective utilization.

6. High Costs:

• Financial implications of adopting advanced technologies can deter organizations from integration.

7. Lack of Understanding and Trust:

• General skepticism about the capabilities of AI, blockchain and IoT can impede collaboration necessary for successful implementation.

Comparisons of Kenya’s progress with other African countries.

1) Artificial Intelligence (AI):

Kenya has published its National AI Strategy draft 2025, which emphasizes blockchain and artificial intelligence. The use of AI-powered equipment by small-scale farmers has resulted in a developing ecosystem of AI research and entrepreneurs. South Africa has made great strides, such as establishing a comprehensive National AI Policy Framework, as have other African nations like Egypt, Tunisia and Morocco.

2) Blockchain Engagement in Kenya

– To investigate blockchain's potential for service delivery and economic growth, the Blockchain and AI Task Force was established in 2018.

– Africa had a 1,668% rise in blockchain finance by 2022, with $91 million coming from South Africa, Nigeria, and Kenya combined.

– This surge underscores Kenya's rapid growth in implementing blockchain solutions that stimulate economic development in East Africa.

3) Internet of Things (IoT):

Kenya's IoT scene is developing, with uses in fields like urban planning, healthcare and agriculture. IoT device integration has resulted in a large amount of data, which presents chances for improved efficiency and decision-making when paired with blockchain and artificial intelligence.

Although there is a lack of precise comparison data on IoT adoption in African nations, Kenya's aggressive embrace of IoT technologies suggests a promising future.

Recommendations

• Data: Address privacy issues, enhance data quality and support data sharing programs.
• Technology: Make research and development investments, create AI tools that are easy to use and deal with issues of scalability and interoperability.
• People: Make educational and training investments, cultivate mutual respect and understanding, and responsibly create and implement AI to address ethical issues.
• Regulation: Create unambiguous regulatory frameworks, support industry norms, and encourage cooperation between governmental bodies, business, and academic institutions.

References

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How AI, IoT, and 5G are Shaping Africa’s Path to Agenda 2063 . (2025, January 22).  https://www.cambridgemc.com/digital-horizons-how-ai-iot-and-5g-are-shaping-africa-s-path-to-agenda-2063 ?

Kenyan businesses using AI in 2025 - Kenya AI . (2024, June 6). Kenya AI.  https://kenyaai.ke/kenyan-businesses-using-ai/  

Namunwa, K. (2023, June 26). Kenya leads the way in blockchain adoption | CIO Africa . CIO Africa.  https://cioafrica.co/kenya-leads-the-way-in-blockchain-adoption-and-digital-innovation-in-africa/ ?

Rocha, I. F., & Kissimoto, K. O. (2022). Artificial intelligence and internet of things adoption in operations management: Barriers and benefits .  https://www.redalyc.org/journal/1954/195473057005/html/  

What are the main barriers to blockchain adoption in digital transformation projects? (2023, September 1).  https://www.linkedin.com/advice/0/what-main-barriers-blockchain-adoption-digital