Trans-Border Data Flows and Ai Innovation Challenges in the Data Localization Landscape: a Kenyan Perspective

Concerns over the rise of data localization regulations are growing worldwide. Data localization requirements impede cross-border data flows and connectivity, which are essential for digital commerce, democracy, the protection of human rights and AI innovation. Countries, facing the need to protect national security interests and citizens' privacy, have implemented various laws dictating how and where data must be stored and processed. Following the EU's GDPR, similar regulations have emerged globally, asserting control over data generated within national borders. This paper explores challenges posed by these localization trends on trans-border data flows and AI innovation, addressing issues related to democracy, human rights and legal compliance. Drawing on a range of academic and legal sources, the paper emphasizes the need to review the data protection landscape. It advocates for the establishment of global rules that balance public policy objectives while minimizing data protectionism and promoting Data Free Flow with Trust (DFFT).