Within weeks, two of the world’s biggest tech firms have put senior leaders in Nairobi. The timing is hard to ignore. Kenya is rewriting its rules on AI, data centres and digital tax.
Apple hired Pressy Akinyi, the former policy lead at AmCham Kenya, to run government affairs and public policy for East Africa. Microsoft named Angela Nganga, a 14-year veteran with a corporate affairs background, its East Africa Country Lead. Both moves land while Kenya’s rulebook is still being drafted. So the rulebook is now the main stage for East Africa’s tech future. And Nairobi is becoming the place where the region’s deals get made.
Why now. Look at what is on the table in Kenya.
- AI: A draft AI policy for 2026 would cover foreign AI providers whose systems are used in Kenya. Law firm Bowmans says it would also keep sensitive data and critical systems hosted at home.
- Data centres: The Communications Authority plans a separate licence for data centres, Business Daily reported in September.
- Tax: A new tax now applies to foreign providers of software, AI services and digital platforms. Bowmans says the effective rate is 3% of gross turnover, up from 1.5% under the old digital services tax. The Treasury issued new rules on 12 August. The Finance Bill 2026 also proposes a wider meaning of “royalty”. TechCabal says that could raise costs for banks that use card networks and for firms that use software from Microsoft, Oracle or AWS.
- Devices: The same bill proposed an excise duty on smartphones, according to law firm Adams & Adams.
Akinyi’s old job was to lead advocacy on AI governance, cloud, data-centre licensing and cross-border data flows. Nganga has spent years in corporate affairs and public policy. Neither hire looks accidental.
What it means for Kenya. First, Kenya has leverage and has shown it will use it. In 2024, Microsoft and Abu Dhabi firm G42 announced a $1 billion geothermal data centre in Olkaria. Ubergizmo and Ecofin report that it has stalled. Kenya reportedly declined to guarantee annual capacity payments. President William Ruto said powering it fully would mean switching off half the country. Kenya’s installed capacity is about 3,192 megawatts, and peak demand hit 2,444 in January. The grid is a real limit.
Second, expect more skilled people to move into company roles. Microsoft’s Africa Development Centre in Nairobi has about 500 staff. Oracle has chosen the city for a cloud region, according to Ecofin. That is good for jobs and skills. But who will keep speaking for the wider sector when its best-prepared people move in-house? That means industry bodies, researchers and civil society. In our read, these groups will need more support to stay in the room.
Third, ordinary users will feel these decisions at the till. Apple Pay is not yet available in Kenya, according to Tech-ish. A tax or duty on devices and software can end up in prices. Which payment tools arrive, and what a phone costs, depends on talks that rarely make the news.
What it means for East Africa. Nairobi is becoming the regional control room for global tech. That can help, because one well-run hub can attract investment that benefits its neighbours. It also carries a risk. Uganda, Tanzania and Rwanda have their own laws and priorities. A July study from Strathmore University compared the AI policies of Kenya, Rwanda, Tanzania and Uganda. If companies treat Kenya’s rules as the regional default, smaller markets may find their choices made elsewhere. Our read is that neighbours do best by stating clear positions early. That way, regional deals reflect more than one capital.
Why it matters: The decisions made in these rooms shape what Africans pay for software and phones. They shape where data is stored and how many local engineers get hired. Big tech is organising to influence them. The best outcome for the region is a fair market where local companies, researchers and citizens help set the terms.
What to watch next: whether Apple and Microsoft comment on Kenya’s AI policy and data-centre licence, whether the Olkaria deal is reworked, what Parliament does with the Finance Bill, and whether Google, Meta and Amazon name Nairobi-based policy chiefs of their own.
Sources: Bowmans on Kenya’s draft AI and Emerging Technologies Policy 2026; Bowmans on Kenya’s Significant Economic Presence Tax Regulations 2026; Business Daily on the data-centre licence; TechCabal on Kenya’s tax plans for card networks and software firms; Adams & Adams on the smartphone duty proposal; Ecofin Agency on the race to lead Africa’s AI economy; Ubergizmo on Microsoft’s Kenya data centre; Tech-ish on Apple Tap to Pay and Kenya; Strathmore CIPIT East African AI Policy Outlook Report; Microsoft on its East Africa Country Lead.
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