The head of the Bank of England, Andrew Bailey, has issued a sharp warning that the global economy is facing a job market disruption from Artificial Intelligence on the scale of the Industrial Revolution. Bailey emphasized that workers will be displaced, urging a massive push for AI-related skills, training, and education to prepare for the shift.

This warning from one of the world's top financial figures carries significant weight for Kenya, a nation that prides itself on being a continental tech hub yet grapples with staggering youth unemployment. With 800,000 young people entering the job market annually and a youth unemployment rate as high as 67%, the question of how AI will impact livelihoods is no longer academic—it's a matter of national urgency.

The Kenyan Reality: A Double-Edged Sword

Here at home, the AI wave is already being felt. A recent report from BrighterMonday Kenya revealed that up to 65% of the hard skills required for common jobs in the country could be automated by AI. This poses a direct threat to sectors like customer service, administration, and even parts of manufacturing, which have traditionally absorbed young workers.

The concern is particularly acute for entry-level positions. Bailey noted the growing difficulty for inexperienced professionals to secure their first job, a sentiment that resonates deeply in Kenya where employers already demand extensive experience from fresh graduates. Global bodies like the International Monetary Fund (IMF) echo these concerns, stating that nearly 40% of jobs worldwide are exposed to AI, with the potential to worsen inequality.

Forging a National Response

Kenya is not standing still. In March 2025, the government launched its first National AI Strategy, a roadmap designed to navigate these challenges. The strategy acknowledges the risks of job loss but focuses on transforming Kenya into an AI innovator, not just a consumer. Key pillars of the plan include:

• Talent Development: A fundamental shift in the education system to integrate AI literacy from an early age and launch national reskilling programs.
• Investment & Innovation: Boosting government and private funding for homegrown AI solutions in critical sectors like agriculture, healthcare, and finance.
• Ethical Governance: Creating a regulatory framework that protects citizens' data and ensures AI is developed in line with Kenyan values.

Analysts note that while the disruption is real, AI is also projected to create new roles. The World Economic Forum, for instance, projects a net gain of 2 million jobs globally by 2030 as AI creates new opportunities in fields like data science, cybersecurity, and digital marketing. For Kenya, the challenge is to prepare its workforce to capture these new roles.

As Sarah Ndegwa, Acting Managing Director of BrighterMonday Kenya, noted, “We're riding a massive digital wave that's redefining employability. It's not just about jobs existing, but whether we're ready for them.”