Turning Global Demand Into Local Growth Through Kenya’s Digital Leap

By 2027, the European Union alone could face a shortfall of around 4 million technology professionals. This acute shortage is reshaping economies worldwide, as companies scramble to fill roles that will power the AI revolution. In this global race for digital talent, Kenya stands at a pivotal crossroads, uniquely positioned to leverage its young, dynamic workforce to compete internationally while building a thriving digital economy at home.

Already, digitally delivered services account for more than half of global service exports. Kenya is poised to benefit, with its digital economy projected to reach $23 billion by next year, contributing nearly 10 percent of the nation’s GDP. It’s estimated 1.9 million Kenyans are already engaged in digital jobs. In fact, GitHub predicts Kenya could become one of the top 10 developer communities by 2030, with AI-related contributions rising rapidly, fueled by companies adopting new tools to compete globally.

The country’s vibrant startup scene includes Semiconductor Technologies Limited (STL), which received a United States Trade and Development Agency (USTDA) grant to develop a facility that will strengthen the global supply chain for legacy chips. Kenya also became the first African country selected for CHIPS and Science Act funding from the US.

Bridging the digital divide at home

These global successes underscore Kenya’s growing influence in advanced technology. However, the nation’s long-term prosperity depends on cultivating robust opportunities at home. Currently, only 24 percent of African firms make use of advanced digital tools. This digital divide stifles productivity and growth and limits the number of tech jobs available to young people, particularly in the informal economy, where AI could be transformative.

To fully realize the promise of AI, Kenya must accelerate the digitalization of its local economy. This means empowering local ventures to adopt advanced tools and ensuring that AI skills are in demand within the country, not just abroad.

As Ambassador Phillip Thigo, Special Envoy on Technology for the Government of Kenya, notes, “What matters is the capability and confidence we build in people to take ownership of their learning and adapt as the world changes. That’s the real goal.”

Building sustainable AI ecosystems

A critical factor in encouraging widespread AI adoption is the quality and relevance of data. Currently, 96 percent of African CEOs cite data readiness as a challenge. What’s more, much of today’s AI is trained on datasets from outside Africa, limiting the effectiveness and fairness of AI solutions.

To address this, organizations, research institutions, and governments must invest in local data curation, labeling, and open-data partnerships. By building robust, representative data ecosystems, Kenya can ensure that AI systems reflect its unique languages, and socioeconomic realities.

However, even with improved data quality, the most significant barrier to AI-driven transformation remains human capital and infrastructure. While 81 percent of African CEOs believe that upskilling in AI will directly impact their success, the demand for advanced AI skills is outpacing current capabilities. Kenya ranks  93rd globally in AI readiness, highlighting the urgent need for investment in both skills and infrastructure.

Advancing decent work and inclusive growth

This skills gap is compounded by fragile labor protections. Many digital workers operate outside formal employment frameworks, classified as independent contractors without access to minimum wages, social insurance or paid leave.

Caroline Njuki, Chief Technical Advisor at the ILO in Kenya, emphasizes the importance of addressing these challenges: “As digital work becomes a cornerstone of Kenya’s economy, our labor policies must keep pace with the realities young people face. We need modern, responsive protections that recognize platform work as legitimate work, ensuring fair pay, safety nets, and pathways to career progression. Only then can Kenya’s youth participate in the digital economy with confidence and secure access to decent jobs.”

To truly advance inclusive growth, Kenya must pair opportunity with investment in infrastructure, policies, and skills development. Expanding digital access and strengthening Kenya’s thriving startup ecosystem are essential for empowering its large, talented, and youthful developer community.

Scaling skilling initiatives and partnerships

Kenya’s skilling efforts are gaining momentum. The AI Skilling Initiative has already trained over 600,000 people. The next step is to implement industry-recognized credentials, integrate work-based learning opportunities, and align curricula with current employer requirements. This can increasingly be coordinated through platforms like the Kenya Artificial Intelligence Skilling Alliance (KAISA).

The Alliance brings together the International Labor Organization, the Government of Kenya, the Kenya Private Sector Alliance, academic institutions, and development partners to ensure that training aligns with industry needs and promotes ethical AI practices.

Its focus is on fostering decent jobs by championing robust policies, standardized credentials, and coordinated skills development programs. By assessing current training standards and identifying gaps, the Alliance aims to make AI opportunities accessible to everyone.

Community-based delivery models can also make an impact. For example, the Kenyan Union of Gig Workers (KUGWO) launched community learning campaigns, equipping over 1,300 participants with high-demand digital and AI skills while offering practical support for navigating platform work.

Kenya has built a solid base of digital talent, but converting that strength into global competitiveness will require targeted investment, stronger industry–government coordination, and sustained upskilling. Emerging platforms such as the Kenya AI Skills Alliance (KAISA) are helping close the gap between global demand and local capability by connecting Kenyan professionals to opportunities that sharpen their expertise while strengthening institutions at home.

For businesses, these networks offer a practical route to accelerate AI adoption. By tapping into gig workers and globally recognised specialists, firms can modernise operations, improve productivity, and build solutions that meet international standards. This approach also positions Kenya to bypass slower development pathways by cultivating a workforce that can compete globally while driving innovation locally.

If scaled effectively, this model ensures that digital transformation strengthens key sectors — from public services to agriculture, finance, and health — laying the groundwork for Kenya’s next phase of economic growth.

Read Also: Kenya’s Economy Poised for Resilient Growth in 2026 as Digital Adoption and Trade Diversification Accelerate

By Winnie Karanu, AI Skills Director, Microsoft Elevate