Digital Transformation and AI in Public Sector Project Management in Kenya: Challenges, Opportunities, and Policy Recommendations

Abstract

Public sector institutions globally are increasingly adopting Artificial Intelligence (AI) and digital tools to improve project implementation, service delivery, accountability, and operational efficiency. In Kenya, public sector projects continue to face persistent challenges, including delays, budget overruns, fragmented communication systems, weak monitoring frameworks, and bureaucratic inefficiencies that negatively affect project outcomes and public trust in government institutions. This paper examines the role of AI and digital project management tools in enhancing efficiency and accountability in Kenya's public sector, drawing on Kenya's evolving digital governance landscape including the Digital Economy Blueprint (2019), the Kenya National Digital Master Plan 2022–2032, and the Kenya Artificial Intelligence Strategy 2025–2030. Using a structured secondary literature review guided by the OECD Digital Government Framework and the Technology Acceptance Model (TAM), the paper identifies four core findings: the persistence of manual workflows across most public agencies, fragmented inter-agency coordination systems, a significant digital skills deficit in the public service, and escalating cybersecurity vulnerabilities. Despite these challenges, substantial opportunities exist through AI-powered analytics, workflow automation, cloud-based collaboration tools, and integrated Management Information Systems (MIS). The paper concludes with seven targeted policy recommendations covering digital governance frameworks, institutional capacity, interoperability, procurement reform, public-private partnerships, and ethical AI governance. These findings contribute to the growing body of literature on digital governance in Sub-Saharan Africa and offer actionable guidance for practitioners and policymakers pursuing sustainable public sector transformation.