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Kenya proposes mandatory AI disclosures for businesses under new policy

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Kenya proposes mandatory AI disclosures for businesses under new policy

Kenyan businesses could be required to disclose when customers are interacting with artificial intelligence (AI) systems under a proposed government policy aimed at introducing greater transparency around the use of the technology.

The draft Kenya Artificial Intelligence and Other Emerging Technologies Policy states that individuals “are entitled to know when an AI system is acting on them” and would require organisations to inform customers when they are communicating directly with AI systems.

If adopted, the proposed requirements could have implications for banks using AI for credit decisions, insurers processing claims, telecommunications companies operating customer service chatbots, employers screening job applicants, hospitals deploying clinical decision-support tools and media organisations publishing AI-generated content.

“Where a person interacts directly with an AI system in place of a human, where an automated system makes or materially shapes a decision that significantly affects their rights, access to services, or legal interests, or where content presented to the public has been generated or substantially altered by AI, that fact shall be disclosed in a clear and accessible manner,” the draft policy states.

The proposed transparency requirements reflect a broader global shift towards greater accountability and disclosure as AI systems become increasingly integrated into consumer and business services.

The European Union’s AI Act similarly provides for disclosure requirements in certain interactions with AI systems, while introducing transparency obligations for AI-generated or manipulated content in specified circumstances.

In the United States, states including California have introduced requirements for disclosures on political advertisements containing AI-generated material, while federal agencies have also warned businesses against misleading consumers about their use of AI.

The proposed disclosure rule is among the most prominent consumer-facing provisions in the 226-page draft policy, which seeks to move Kenya beyond encouraging AI adoption towards establishing governance measures for its deployment across the economy.

The government said the policy is designed to balance technological innovation with safeguards against discrimination, opaque decision-making and misuse of AI systems.

Generative AI drives demand for greater transparency

The proposal comes as Kenyan businesses, including banks and insurers, increasingly deploy generative AI for customer support, fraud detection, marketing, software development and internal business operations.

Many of these applications currently operate without customers necessarily being aware that AI is involved.

The draft policy proposes that AI systems should remain “explainable, auditable, and subject to human oversight” throughout their lifecycle. It also emphasises that people should retain control over AI systems capable of affecting individual rights, safety or access to essential services.

“Humans shall retain meaningful control over systems that affect individual rights, safety, or access to essential services,” the draft stated.

For high-risk AI systems, the policy proposes mechanisms for human review and intervention, as well as clear allocation of responsibility where automated systems influence significant outcomes.

These measures could place greater emphasis on regulatory monitoring, risk assessment, compliance management and internal controls for organisations deploying AI in sensitive areas.

The transparency agenda forms part of Kenya’s wider ambition to position itself as a regional hub for AI governance. In May, the government backed the Africa Forward Declaration, which advocates greater investment in African computing infrastructure, sovereign data systems and locally developed AI models.

Kenya has also secured the right to host the 2027 Responsible AI in the Military Domain (REAIM) summit, marking the first time the global forum will be held in Africa.

The draft policy proposes the establishment of a national AI council and an AI office to coordinate AI regulation across government while supporting domestic research, infrastructure development and investment.

However, the proposal leaves several implementation questions unanswered. The draft does not specify whether every chatbot interaction would require a notification, how organisations should determine when AI has “materially shaped” a decision, or what penalties could apply to businesses that fail to disclose their use of AI.

If adopted, these issues are expected to be addressed through subsequent implementing regulations, which could provide more detailed regulatory requirements for businesses and other organisations deploying AI technologies.

The proposed framework signals Kenya’s move towards stronger AI governance, with transparency, accountability, explainability and human oversight emerging as important elements of its evolving regulatory framework for artificial intelligence.

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