AI as a growth accelerator: Why East Africa is emerging as a testbed for digital transformation AI is becoming a critical growth accelerator for East African businesses—not because it is fashionable, but because it delivers speed, sharper insights and resilience in a volatile environment, writes Benson Ndung’u, CEO, KPMG East Africa. He believes that with a young, agile workforce, rising CEO confidence and a distinctly practical approach to problem-solving, the region is emerging as a proving ground for meaningful digital transformation. To unlock its full value, East African organisations must strengthen their data foundations, invest deliberately in digital skills and scale AI through high-impact, real-world use cases.

As East African economies continue to navigate the pressures of inflation, currency swings and an increasingly uncertain global landscape, one question is rising to the top of boardroom agendas: how do organisations stay steady when the environment around them keeps shifting?

The latest KPMG Africa CEO Outlook suggests that leaders are beginning to find their answer. AI has moved from the margins to the centre of strategic thinking, with 71% of African CEOs investing in AI and talent to strengthen growth and resilience. In East Africa specifically, 40% of CEOs now view AI as a critical tool for operational efficiency and smarter decision making.

In fact, in recent conversations with CEOs across the region, the message has been strikingly consistent. The traditional playbook is no longer enough. The tools that worked in previous cycles are no longer delivering the same results. In a tougher, less predictable cycle, leaders aren’t turning to AI because it is trendy – they’re turning to it because it offers something leaders urgently need: speed, sharper insights and a more confident way to make better decisions in uncertain conditions.

Moving from talking about AI to actually putting it to work

What stands out is also how quickly organisations are moving from curiosity to implementation and execution. Across East Africa, companies are already using AI to improve forecasting, streamline routine tasks and strengthen risk management. These are not theoretical pilots or distant ambitions – they are live, practical adjustments happening inside businesses right now.

This adoption and momentum are being fuelled by rising confidence:  76% of East African CEOs expect their organisations to grow, even in a challenging environment. That optimism is translating into real investment and action.

A young workforce that’s ready for the digital shift

East Africa’s young workforce gives the region a meaningful edge in this transition. Only 15% of African CEOs mention generational skills gaps as a major barrier to adopting AI – significantly lower than in many global markets.

On the ground, this translates into teams that adopt new digital tools with speed and curiosity. Younger employees experiment, troubleshoot and build confidence with unfamiliar systems at a faster pace than traditional adoption curves would suggest. Moreover, encouraging 62% of East African CEOs are actively hiring digital talent to strengthen internal capabilities rather than relying solely on external expertise or partners.

This mix of agile teams and fresh digital skills and talent creates powerful momentum. However, it will only translate into long-term value if organisations put the right foundations in place.  

Where the real bottlenecks still sit

The hurdles to scaling AI remain significant. 96% of CEOs see data readiness as a major challenge – a reflection of what many organisations are dealing with every day. Inconsistent, fragmented across silos or trapped in legacy systems make integration slow and complex.

At the same time, cybersecurity concerns are accelerating. As operations digitise and AI-driven workflows expand, so too does the threat landscape. While AI can help detect unusual activity, without solid governance and secure infrastructure, the risks grow alongside the opportunities. 

These are not small issues; they sit at the heart of successful AI adoption that delivers value. The technology cannot deliver its full value if the infrastructure is weak or if cybersecurity is treated as an afterthought. Leaders need to approach data and security with the same urgency they reserve for capital decisions, market growth or regulatory requirements.

We have an opportunity – but it requires discipline.

Despite these challenges, East Africa has a genuine window of opportunity. While some advanced markets are slowing their AI ambitions and investment due to rising costs or tighter regulation, the region is charting a different course – one that is practical, cost-conscious and grounded in real operational needs. Instead of pursuing innovation for innovation’s sake, East African organisations are building leaner systems, focused use cases and tools designed to deliver immediate business value.

If leaders keep investing with intention, AI can become a real competitive advantage for East African companies. It can help organisations respond faster to market shocks, improve customer experience and build greater resilience deep into organisational structure. 

The priority now is to scale deliberately:

• Strengthen data governance and infrastructure.
• Invest in digital skills and retraining.
• Prioritise use cases that improve performance today.

East Africa is no longer waiting for global markets to set the pace. The region is carving our own path – shaped by local conditions and driven by a willingness to adapt quickly. If organisations get the fundamentals right, AI can become a powerful catalyst for the region’s next phase of economic transformation.

The writer, Benson Ndung’u, is the CEO, KPMG East Africa