Saturday, November 23, 2024

Kenya Continues to Build Business Process Outsourcing Market Share Amid Digital Economic Growth

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Kenya is emerging as one of the leading Global Business Services (GBS) market destinations and attracting more than $500 million USD in revenues annually, Sama AI CEO Wendy Gonzalez has disclosed. Projections show that $254 million USD, over half of these revenues, will come from business process outsourcing (BPO) in 2024.

Kenya has emerged as an attractive investment destination in the highly competitive GBS market, which includes BPO as a submarket. BPO has grown to include AI supply chain providers such as Sama, Gonzalez explained.

Speaking at the University of Nairobi during a public lecture on Generative AI, Gonzalez noted that the GBS market reached $1 trillion USD in revenues last year, with South Africa, Egypt, Tunisia and Morocco also playing in the maturing league. With its $500 million GBS revenues, Kenya is leading among emerging GBS destinations including Senegal, Nigeria, Mauritius, Zimbabwe, Rwanda and Ghana. She projected that at current growth rates, Kenya will emerge as the leading provider of digital work opportunities with a positive local economic ripple effect.

 

“Studies have shown that digital work increases formal employment opportunities and is the fastest-growing sector. Kenya has made very good headway amidst stiff competition and must avoid complacency by guarding its market positioning and providing an enabling environment to further deepen the GBS market opportunity,” said Gonzalez. She added, “Kenya is a preferred destination due to the quality of human capital that is versatile enough to serve various market segments, including Generative AI, thanks to digital training and academic progress. Several countries are, however, fighting hard to edge Kenya out of its growth track, which necessitates close attention to secure market positioning.”

While commenting on the skills required to secure our national market positioning, Gonzalez noted that by 2030, an estimated 50-55% of jobs in Kenya will require digital skills. “Yet there are significant gaps in basic and advanced digital skills—particularly in rural areas and among women,” she said. To help bridge this skills gap, Sama has collaborated with the University of Nairobi to advance AI skills in one of the first partnerships of this kind in Kenya

Both the State Department for ICT and the Digital Economy Principal Secretary Eng. John Tanui and University of Nairobi Acting Vice Chancellor Prof. Margaret Hutchinson also spoke at the lecture.

Principal Secretary Tanui stressed that AI is no longer science fiction, saying: “We are living in an era where AI is not just a possibility—it is our present reality, and the sooner we fully embrace it, the better prepared we will be for the future.” He noted that Generative AI alone could add between $2.6 and $4.4 trillion USD annually to the global economy. To bring some of this growth to Kenya, the government is establishing policies and frameworks that foster innovation and invest in research and development while protecting the rights and interests of all citizens, following the principles of ethical AI development and usage.

 

“With 65% of organizations already integrating Generative AI into operations, its impact is undeniable, from enhancing customer service to revolutionizing industries. As we embrace this digital future, partnerships and education in STEM are key to preparing our workforce for the opportunities ahead,” he added. “It is our collective responsibility to develop ethical guidelines that govern AI use in a manner that upholds human dignity and values. As a government, we will establish policies and a regulatory framework that fosters innovation while protecting the rights and interests of all citizens. We will continue to invest in research and development and champion the ethical use of AI.

Prof. Margaret Hutchinson, the Acting Vice Chancellor of the University of Nairobi, underscored the institution’s pivotal role in equipping students with the skills to navigate the digital economy, adding: “The University of Nairobi is committed to bridging the gap between academia and industry, ensuring that our graduates are not only job-ready but also future-ready.”

Sama and the University of Nairobi’s partnership is poised to advance Generative AI capabilities in Kenya and in Africa as a whole. This collaboration will provide part-time employment opportunities for UoN faculty and students, equipping them with practical experience in GenAI. This initiative aligns with the broader goal of bridging the digital divide and positioning Kenya as a global AI value chain leader.

Samuel Musila
Samuel Musilahttps://techknow.africa
Passionate Software Developer and Tech content creator From Nairobi, Kenya

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