Nominated Senator Karen Nyamu/ HANDOUT A Senate committee has rejected a controversial Bill seeking to regulate artificial intelligence in the country.
The Senate Information, Communication and Technology Committee warned that the Bill’s punitive provisions could cripple innovation, drive away investors and force local technology developers out of the country.
Chaired by Trans Nzoia Senator Allan Chesang, the panel has asked the House not to proceed with the Artificial Intelligence Bill, 2026, sponsored by nominated Senator Karen Nyamu.
In a damning report, the committee warns that the proposed legislation risks creating an expensive regulatory bureaucracy while imposing harsh penalties on technology startups and individual innovators.
"That the Bill may regulate AI too broadly, too early and too punitively for Kenya's current stage of digital and innovation ecosystem development," the committee states.
The committee arrived at its recommendation after considering submissions from 143 stakeholders, including government agencies, multinational technology companies, professional associations, civil society organisations and individual citizens.
The Bill, introduced in the Senate in April, seeks to establish a comprehensive legal framework governing the development, deployment and use of artificial intelligence.
It proposes the establishment of an Office of the Artificial Intelligence Commissioner, with sweeping powers to investigate violations, conduct audits and impose administrative sanctions.
Under the proposed legislation, serious offences would attract fines of up to Sh5 million, imprisonment for up to two years, or both.
However, the committee warns that such penalties could disproportionately punish small technology developers experimenting with emerging innovations.
"That the penalties, including heavy fines and potential criminal charges are disproportionate to the activities of many local developers whose work is experimental, non-commercial and seeks to improve local access to technology rather than causing harm," the report states.
The committee further warns that excessive regulation could trigger an exodus of Kenyan technology innovators to countries with more favourable regulatory environments.
It notes that overregulation could result in developers relocating their operations and intellectual property abroad, undermining Kenya's ambitions to become a regional technology powerhouse.
The lawmakers also questioned the proposed creation of a powerful AI Commissioner, warning that the office could duplicate the functions of existing government agencies.
"A key stakeholder concern was the creation of a 'Super Regulator' in the Office of the AI Commissioner," the report states.
The committee observes that the proposed office would concentrate administrative, supervisory, enforcement and quasi-judicial powers, potentially creating conflicts with existing regulators.
These include the Office of the Data Protection Commissioner and the Communications Authority of Kenya.
The committee also raised concerns about the financial implications of establishing additional government institutions at a time when the country faces mounting pressure to contain public expenditure.
Microsoft Kenya, among stakeholders who submitted memoranda, proposed embedding AI regulatory functions within existing institutions instead of creating a standalone office.
Other stakeholders, including Google and Safaricom, raised concerns about the proposed definitions and regulatory obligations.
The committee also faulted the Bill for failing to adequately address cross-border AI systems, general-purpose AI models and emerging technological risks.
It observed that Kenya primarily uses AI systems developed by foreign technology companies, making the proposed centralised regulatory framework difficult to enforce.
The lawmakers consequently recommended that the government first finalise a comprehensive national policy to guide future legislation.
The Ministry of ICT informed the committee that the National Artificial Intelligence and Emerging Technologies Policy, 2026, was in its final stages of development.
"Having considered the Bill and the submissions received, the committee recommends that the Senate does not proceed with the Artificial Intelligence Bill, 2026," the report concludes.
INSTANT ANALYSIS
The Senate committee’s rejection of Karen Nyamu’s AI Bill exposes the delicate balance between regulating emerging technology and protecting innovation. While safeguards against AI abuse are necessary, punitive fines and a powerful regulator risk stifling startups and driving talent abroad. The proposed legislation also raises concerns about duplication of regulatory mandates and public spending. Developing a national AI policy before enacting legislation could provide a more measured framework for regulation without undermining Kenya’s digital ambitions.
