How new AI systems could unlock opportunities for businesses, economy

In Nairobi’s bustling central business district (CBD), it isn’t unusual to see parents juggling their daily hustles while worrying whether their children are truly learning in crowded classrooms.

Across the country, a patient might spend hours queuing in a hospital only to be told to return the next day.

Court cases drag on for years, stalling business, deterring investment, and eroding faith in the justice system. These inefficiencies are not abstract… They cost Kenya billions of shillings in lost productivity, human capital, and investor confidence.

But something extraordinary is dawning. A new class of technology, Agentic AI, or autonomous “digital humans”, is quietly emerging.

Unlike the eminent AI that merely responds to commands, these agents reason, plan, and even create other agents.

Imagine a coalition of tireless, incorruptible, multilingual digital humans, tutors, health navigators, and court clerks working around the clock. Not science fiction, but a potential growth engine.

Recently, in Mombasa, this future was given a local face. Bill Faruki, a Pakistan-born, California-based entrepreneur and one of the leading minds behind agentic AI, headlined the AI conference.

Attended by some of Africa’s government officials, including Kenya’s Secretary of ICT, E-Commerce and Digital Economy Mary Karema, the event highlighted how these technologies could unlock new possibilities for Kenya’s economy.

Faruki emphasised that Kenya is already on the cusp: “Countless Kenyans are either building or actively using AI solutions. The question is no longer if Kenya will adopt AI—it’s how fast.”

What is agentic AI?

Agentic AI refers to digital actors that go beyond chatbots or predictive systems. These autonomous agents can anticipate challenges, learn continuously, and execute complex workflows with minimal supervision.

Some can even generate new agents to accomplish sub-tasks. For businesses, they mean reduced operational costs and higher productivity. For governments, they offer the chance to deliver more services to more citizens at a lower cost.

Already, countries like China, Singapore, South Korea, and the United States are piloting agentic AI in enterprise automation, education, and healthcare.

In Albania, the world’s first Minister of AI was appointed to integrate AI across public services, an institutional leap that positions the Balkan nation as a trailblazer in Europe.

Still, the risks are real. Gartner predicts that 40 per cent of Agentic AI projects may fail by 2027 due to poor governance, unclear business cases, or ethical blind spots. For Kenya, which cannot afford costly missteps, the challenge is to innovate with discipline.

Kenya’s development bottlenecks

Education and skills deficit

Kenya’s enrollment rates are high, but outcomes remain weak. Only one in three Standard Two pupils (now Grade 2) can read a simple sentence, according to Brookings (2021). Adjusted learning outcomes mean today’s children are likely to achieve only 8.5 effective years of learning out of 11.6 possible, according to the 2023 Unesco report.

This learning crisis is not only a social problem, but an economic one also. Poor outcomes reduce workforce productivity, limit innovation, and slow gross domestic product (GDP) growth.

Health and the productivity drain

In 2020, Kenya had about 190,000 health workers, two-thirds in the public sector, but still far below the World Health Organisation’s (WHO) recommended ratios.

Maternal and child mortality remain high, with under-five mortality standing at 41 deaths per 1,000 live births, according to the Unicef report of 2023.

Strikes, delayed payments, and supply chain bottlenecks deepen the inefficiencies, costing the economy through lost labour productivity and increased healthcare expenses.

Justice and governance: The cost of delay

Court cases drag on for years, locking up capital and delaying business resolutions. Procurement inefficiencies and corruption further inflate costs, eroding investor confidence. These bottlenecks are not just governance failures; they are economic chokeholds.

What Agentic AI could unlock

Digital tutors: Low-cost teaching assistants available 24/7, capable of adapting lessons to each child, monitoring weaknesses, and scaling learning in local languages. Stronger human capital means a more competitive workforce.

Health navigator agents: Virtual doctor-assistants to triage patients, schedule referrals, monitor drug supply chains, and even detect counterfeit medicine. This reduces productivity losses due to illness and absenteeism.

Justice agents: Digital clerks that guide citizens through filings, track cases, and audit procurement processes. Faster, more transparent courts boost investor trust and ease of doing business.

Each use case represents not just technological progress but an economic multiplier.

The business case for Kenya

Kenya, often hailed as the Silicon Savannah, is already home to AI startups and digital innovators. From fintech to agritech, Kenyans are building and scaling AI solutions across sectors. Integrating agentic AI could dramatically accelerate these gains.

Education Return on Investment (ROI): Better learning outcomes mean higher workforce productivity and innovation capacity, translating directly into GDP growth.

Healthcare ROI: Improved access and efficiency reduce long-term treatment costs and raise labour force participation.

Justice ROI: Faster dispute resolution and transparent procurement lower business risks and attract more investment.

Globally, management consultancy firm McKinsey estimates AI could add $13 trillion (Sh1,690 trillion) to the economy by 2030. For Kenya, even a fraction of this pie could shift its development trajectory.

Guardrails and governance

Kenya must pair boldness with caution. Policies must ensure that Agentic AI communicates in local languages, from Kiswahili to indigenous dialects, works in low-connectivity settings, is optimised for rural areas and is regulated, with clear rules for accountability and liability.

It also promotes equity, ensuring rural communities are not left behind. Without these guardrails, Agentic AI risks deepening inequality.

AI is not here to steal jobs, but to be a collaborator. The real divide will be between those who resist and risk being replaced by professionals who harness AI and those who embrace AI as a tool and retain their positions, stronger, faster, and more productive.

“The future of work is not man versus machine—it is man plus machine.”

Globally, governments are moving fast. Singapore is integrating agentic AI into public services. South Korea is experimenting with education.

Albania has gone as far as appointing a dedicated AI minister to mitigate corruption in public procurement. Kenya must decide whether to shape this wave or be shaped by it.

The opportunity is not simply technological—it is economic, strategic, and generational. Agentic AI could help transform inefficiency into productivity, scarcity into abundance, and lag into leap.

Kenya can lead Africa by piloting responsibly, localising models, and crafting policies that balance ambition with accountability.

Because once digital humans are embedded into the fabric of society, Kenya’s future could look radically different: more educated, healthier, more just, and undeniably more competitive.