/>iEast Africa is beginning to explore the potential of Artificial Intelligence (AI). While the AI landscape in East Africa is still nascent, countries in this region are increasingly using Generative AI tools and contemplating AI regulation. As the fastest growing region in Africa—with a growth rate of 4.7% in 2024 and an expected rate of 5.7% in 2025–26—East Africa may be positioned to lead Africa’s AI movement.
In Uganda, for example, there has been a recent boom in the use of Generative AI tools, such as ChatGPT, Gemini and Perplexity AI. The Ugandan government has also established the National AI Taskforce, tasked with generating a comprehensive report to inform a national AI strategy. This is in line with regional peers such as Rwanda, Kenya, and Tanzania which are also at various stages of AI policy and regulatory development.
The African Union has also developed a Continental AI Strategy, which among other aspects, provides for AI governance frameworks, capacity building, AI safety, public-private partnerships, and regional and international cooperation. It is anticipated that global developments such as the European Union AI Act will continue influencing AI evolution and regulation in the Ugandan and African landscape.
Some notable AI use cases in Uganda include research and development at the Makerere AI lab, the use of AI in managing electronic fraud and spam in the fintech sector, and music production. There have also been use cases highlighted in interactive chatbots in financial services, wildlife conservation to save elephants from poachers, and law enforcement uses in the form of surveillance AI facial recognition software supplied by Huawei.
Similarly, in Kenya, promising AI use cases have been reported in education, where applications have been developed to tailor a personalized learning experience for students based on their unique needs, as well as in healthcare to detect cervical cancer and cardiopulmonary diseases.
In Tanzania, a multidisciplinary AI lab was recently launched to assist the country in development of AI infrastructure in healthcare, digital economy and environmental conservation, and agriculture, among others.
In Rwanda, there are reported use cases of aiding healthcare facilities in procuring supplies in real-time by leveraging AI to manage supply chain processes, from shipping to warehousing, distribution, and inventory management. In Rwanda’s international airport, robots have been deployed to provide vital information to travelers, especially during the COVID-19 pandemic.1
The leading AI growth drivers across East Africa include fast-paced digitalization across the region, with Kenya leading in terms of digital maturity according to the Global System for Mobile Communications (GSMA). Furthermore, the expansion of e-payment and fintech solutions has facilitated digital payments has also acted as a major catalyst for digital growth. In Kenya alone, M-Pesa user rates have increased exponentially, reaching a financial inclusion level of over 80% in recent years, according to the Central Bank of Kenya (CBK).
As for regulatory frameworks, some existing electronic laws have provided a basic framework for software business regulation and development in East Africa. In Uganda, some of the major electronic laws include the Electronic Transactions Act, Cap 99; the Data Protection and Privacy Act, Cap 97; the Computer Misuse Act, Cap 96; the Electronic Signatures Act, Cap 98; and the Uganda Communications Act, Cap 103 which created institutions such as the Uganda Communications Commission (UCC), which oversees the liberalized Communications sector.
In Kenya, the Kenya Information and Communications Act (1998) established the Communications Authority of Kenya (CAK), which performs the same functions as UCC. The Kenya Information and Communications Act, Cap.411A created a licensing framework for communication services.
In Tanzania, the Tanzania Communications Regulatory Authority Act (2003) created the Tanzania Communications Regulatory Authority (TCRA); and in Rwanda, one of the first African nations to introduce a national AI policy, the major role players are the Ministry of Information, Communication Technology and Innovation (MINICT) and the Rwanda Utilities Regulatory Authority (RURA).
Other factors fuelling AI growth include the expansion of data centers and cloud facilities coupled with their associated foreign direct investment (FDI) in the region. For instance, Microsoft and G42, an Emirati AI development holding company recently announced multiple AI initiatives across East Africa, including a $1 billion comprehensive digital ecosystem initiative, which will include AI model development and research in local languages, like Swahili; an East Africa Innovation Lab for AI digital skills training; international and local connectivity investments; and collaboration with the government of Kenya to support safe and secure cloud services across East Africa.2 Such investments are anticipated to supply the massive computing power for processing and data storage required for ubiquitous AI deployment and scaling.
But despite the above positive highlights, there are some pain points that need further legal and regulatory intervention to address barriers that could inhibit or slow down AI adoption. The primary challenge lies in the inadequate AI infrastructure, highlighting significant gaps between the current technological capabilities and the resources required for widespread adoption, such as AI-optimized hardware and high-speed networks. The local talent pool in AI engineering, programming, data modeling and analytics, and data science remains limited, further hindered by a traditional education system that requires substantial reforms to address the technical and soft skill demands of today's global economy.
Another key challenge is the increase in digital taxes, such as mobile money and Internet taxes, which are common in East African countries. Uganda, Kenya, and Tanzania have also imposed Value Added Tax (VAT) and Digital Services Taxes (DSTs) on non-resident providers of electronic services. Such taxes on nascent ecosystems increase costs of devices and retrogress digital and financial inclusion. Comprehensive tax impact assessments could provide better insights and strategies to mitigate the harms of excessive taxation.
Other challenges include restrictive enforcement measures, such as internet and mobile money shutdowns, particularly during elections and contested political processes, which disrupt network operations. In Uganda, for example, the continued shutdown of Facebook negatively impacts investor confidence in the sector. Technological convergences driven by AI could result in wider ecosystem challenges for key sectors, such as communications, banking, health, education, and aviation, if networks are further throttled and/or blocked to limit public access resulting in economic disruption and system failures.
In sum, East Africa is positioned for AI expansion and growth in 2025. However, the speed and depth of such AI development will be determined by domestic and global factors such as the surge in global AI investment in the region and countries’ approaches to regulation.
Silver Kayondo is a Partner at Ortus Advocates, an East African legal, tax and business advisory firm. He has previously undertaken secondment at the Dubai office of global law firm, White & Case. To position the Ugandan economy for investment opportunities, Ortus Advocates has developed an AI market Guide for Uganda comprising of a sample AI disclosure notice, a sample AI disclaimer statement, an AI due diligence checklist, and an index of major Ugandan laws that are anticipated to be impacted by the AI revolution.
