Labour Cabinet Secretary Alfred Mutua has warned that the rapid adoption of artificial intelligence could reshape Kenya’s labour market, with some workers at risk of losing their jobs as machines and computer systems take over tasks traditionally performed by people.
Mutua said technological change was already raising questions about workers’ rights, employment contracts and the skills young Kenyans will need as they enter an increasingly digital economy.
Speaking at the Employment and Labour Relations Annual Symposium and Exhibition at Strathmore University on Wednesday, the CS maintained the government would need to adapt labour laws and education systems to keep pace with technological changes.
“My concern is about AI and employment and jobs, because you find there are two issues. One, people are being replaced by machines, by computers, because it can do what you’re doing, and just need one person to verify,” he said.
Mutua said the replacement of workers by AI could create new legal disputes, particularly where employees lose their jobs because their duties have been automated.
He questioned what should happen to workers whose contracts are terminated as a result of technological changes, including whether they should receive compensation for the remainder of their contracts.
“That means that we’ll see cases of employment contracts being terminated, where people need to have their rights.”
His warning comes as Kenya’s labour market continues to expand, but remains heavily dependent on informal employment.
The latest Kenya National Bureau of Statistics Economic Survey shows that total recorded employment, excluding small-scale agriculture, rose from 20.8 million in 2024 to 21.6 million in 2025.
The economy created about 822,100 new jobs in 2025, representing a 4% increase. However, 716,800 of those jobs were created in the informal sector, which accounted for 83.8% of total employment, compared with 16.2% in the formal sector.
The figures highlight the scale of the challenge facing policymakers as technology changes the nature of work.
Globally, the World Economic Forum estimates that labour-market transformation could create 170 million jobs and displace 92 million by 2030. It projects that developments in artificial intelligence and information-processing technologies alone could create 11 million jobs while displacing nine million.
His arguments stressed the need for Kenya to rethink how universities and other training institutions prepare young people for employment.
He argued that graduates would require skills that allow them to work alongside emerging technologies rather than compete directly with systems capable of performing routine tasks.
“The other thing is a scary bit about providing employment for young people, who we are churning out of our great universities, who will need jobs.”
Mutua maintained that this would require greater adaptation and integration of technology into education and employment.
The Cabinet Secretary also raised concerns about Kenyans seeking employment abroad, warning jobseekers against fraudulent recruitment agencies and travelling overseas on tourist visas in search of work.
The National Employment Authority currently lists more than 1,200 licensed private recruitment agencies, while its online system allows jobseekers to verify whether an agency is licensed.
Kenya's overseas workforce has also become increasingly significant. The International Labour Organization estimates that more than 103,800 Kenyans worked abroad during 2024/25 and sent home about $4.9bn in remittances.
Mutua then urged Kenyans travelling for employment to verify recruitment arrangements and obtain the appropriate documentation.
He said the government was finalising a Labour Migration Bill to strengthen protections for Kenyans working abroad.
On industrial relations, the CS urged employers and workers to seek conciliation before strikes, saying his ministry could help resolve disputes and promote stable labour relations.