Kenya leads Africa in BPO growth, projecting $254Mn revenue this year
NAIROBI, KENYA — Kenya is swiftly emerging as a premier destination for business process outsourcing (BPO) within the Global Business Services (GBS) sector.
Wendy Gonzalez, CEO of Sama AI, forecasts that Kenya will generate approximately $254 million in BPO revenues in 2024, primarily fueled by the increase in digital work.
This positions Kenya ahead of other emerging GBS destinations such as Senegal, Nigeria, Mauritius, Zimbabwe, Rwanda, and Ghana, with annual revenues surpassing $500 million (Sh64.5 billion).
Digital skills: Kenya’s competitive advantage
In a recent public lecture on generative artificial intelligence (GenAI) in Nairobi, Gonzalez highlighted Kenya’s attractiveness as an investment hub within the competitive GBS market. She praised the country’s adaptable human capital, which is capable of serving various market segments, including GenAI.
“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,” Gonzalez stated.
Despite these achievements, Gonzalez warned that Kenya faces intense competition from other countries aiming to capture its market share. She emphasized the necessity of maintaining a robust market position and creating an environment that fosters further growth in the GBS 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,” she added.
Bridging the digital skills gap for future growth
Looking ahead, Gonzalez projected that by 2030, more than 50-55% of jobs in Kenya will require digital skills. However, she pointed out significant gaps in both basic and advanced digital skills, particularly in rural areas and among women.
This underscores the need for targeted efforts to bridge these gaps and prepare the workforce for future opportunities.
Strategic partnerships and economic impact of GenAI
The State Department for ICT and the Digital Economy Principal Secretary, John Tanui, emphasized the transformative potential of Generative AI, which could contribute between $2.6 trillion (Sh335 trillion) and $4.4 trillion (Sh568 trillion) annually to the global economy.
“With 65 percent of organizations already integrating Generative AI into operations, its impact is undeniable, from enhancing customer service to revolutionizing industries,” Tanui remarked.
To support this digital transition, Sama AI and the University of Nairobi have signed a partnership to advance Generative AI capabilities in Kenya and across Africa. This collaboration aims to provide part-time employment opportunities for faculty and students and equip them with practical experience in GenAI.
This initiative also aligns with the broader goal of bridging the digital divide and positioning Kenya as a global leader in the AI value chain.
