The Prague Post - Can Kenya attract the outsourcing jobs of the AI future?

EUR -
AED 4.269263
AFN 76.139427
ALL 92.069828
AMD 422.959573
ANG 2.080612
AOA 1067.169554
ARS 1757.296319
AUD 1.610103
AWG 2.092489
AZN 1.977567
BAM 1.955142
BBD 2.340513
BDT 142.731997
BGN 1.972015
BHD 0.438156
BIF 3476.860597
BMD 1.162494
BND 1.471318
BOB 14.497187
BRL 5.96255
BSD 1.162119
BTN 109.737566
BWP 15.558901
BYN 3.573998
BYR 22784.883161
BZD 2.337114
CAD 1.605805
CDF 2650.486518
CHF 0.941041
CLF 0.027512
CLP 1086.328032
CNY 7.801848
CNH 7.799632
COP 3627.853272
CRC 527.427157
CUC 1.162494
CUP 30.806092
CVE 110.228403
CZK 24.193244
DJF 206.598278
DKK 7.474203
DOP 68.787458
DZD 154.807872
EGP 59.192222
ERN 17.437411
ETB 188.440346
FJD 2.576551
FKP 0.859938
GBP 0.858444
GEL 3.028292
GGP 0.859938
GHS 13.218611
GIP 0.859938
GMD 86.024876
GNF 10214.828236
GTQ 8.871055
GYD 243.119282
HKD 9.114012
HNL 31.178782
HRK 7.53424
HTG 151.970198
HUF 363.640345
IDR 20523.832255
ILS 3.49963
IMP 0.859938
INR 109.949968
IQD 1522.288036
IRR 1597964.305585
ISK 140.38296
JEP 0.859938
JMD 184.549521
JOD 0.824233
JPY 179.438509
KES 150.473371
KGS 101.659793
KHR 4705.457973
KMF 492.897284
KPW 1046.244976
KRW 1563.984352
KWD 0.35906
KYD 0.968374
KZT 527.84248
LAK 26042.025808
LBP 104062.402522
LKR 381.253258
LRD 203.362481
LSL 18.579411
LTL 3.432542
LVL 0.703181
LYD 7.386579
MAD 10.906179
MDL 20.074249
MGA 4976.369193
MKD 61.504315
MMK 2440.935276
MNT 4181.527507
MOP 9.384444
MRU 46.682702
MUR 54.509449
MVR 17.97222
MWK 2015.039651
MXN 19.68009
MYR 4.703422
MZN 74.286751
NAD 18.578852
NGN 1536.642546
NIO 42.766721
NOK 10.776553
NPR 175.58046
NZD 1.977722
OMR 0.44698
PAB 1.162009
PEN 3.898689
PGK 5.163264
PHP 72.854644
PKR 322.735636
PLN 4.310237
PYG 6922.671819
QAR 4.224098
RON 5.249589
RSD 117.327093
RUB 99.915909
RWF 1714.038292
SAR 4.36615
SBD 9.300548
SCR 16.14816
SDG 699.178815
SEK 11.150989
SGD 1.471816
SHP 0.861252
SLE 28.655818
SLL 24376.917848
SOS 664.082373
SRD 43.877759
STD 24061.279537
STN 24.491974
SVC 10.167581
SYP 15114.747383
SZL 18.575912
THB 38.220446
TJS 10.731637
TMT 4.068729
TND 3.391674
TOP 2.799007
TRY 56.300168
TTD 7.888347
TWD 36.653104
TZS 3074.250008
UAH 51.651273
UGX 4392.541626
USD 1.162494
UYU 46.77447
UZS 13700.392388
VES 937.408573
VND 30248.09489
VUV 137.136128
WST 3.159793
XAF 655.742107
XAG 0.017558
XAU 0.000264
XCD 3.141698
XCG 2.094296
XDR 0.821944
XOF 655.742107
XPF 119.331742
YER 275.511341
ZAR 18.593197
ZMK 10463.848716
ZMW 22.282506
ZWL 374.322606
  • CMSD

    -0.0700

    20.69

    -0.34%

  • CMSC

    -0.1100

    20.81

    -0.53%

  • RIO

    0.4300

    103.27

    +0.42%

  • BCC

    2.0900

    79.21

    +2.64%

  • RYCEF

    0.1400

    19.92

    +0.7%

  • RELX

    -1.1400

    35.51

    -3.21%

  • JRI

    -0.0700

    12.14

    -0.58%

  • VOD

    0.3200

    16.9

    +1.89%

  • RBGPF

    0.0000

    70

    0%

  • BCE

    -0.1400

    23.67

    -0.59%

  • NGG

    -0.0500

    78.12

    -0.06%

  • BTI

    -0.6200

    55.35

    -1.12%

  • AZN

    -2.0700

    162.7

    -1.27%

  • BP

    0.2300

    43.81

    +0.52%

  • GSK

    -0.9800

    49.89

    -1.96%

Can Kenya attract the outsourcing jobs of the AI future?
Can Kenya attract the outsourcing jobs of the AI future? / Photo: Tony KARUMBA - AFP

Can Kenya attract the outsourcing jobs of the AI future?

In a leafy Nairobi suburb, a Kenyan firm helps foreigners track shoplifters, monitor lung damage from Covid-19 and identify whales -- tapping into the outsourcing market's artificial intelligence-boosted boom.

Text size:

Cloudfactory started in Kenya in 2014, initially doing simple tasks like transcription for overseas clients.

But since 2024, it has taken on a wide array of AI-powered business that is transforming the sector and raising hopes Africa could become a new hub for digital outsourcing.

Clients include Charles River Analytics, a US robotics firm that needed its AI trained to spot whales so its unmanned vessels would not collide with them.

For other firms, Cloudfactory analyses medical X-rays, helps insurers spot damaged roofs and measures forest cover to see whether carbon-offsetting projects live up to their hype -- employing 130 staff and 3,000 freelancers in the process.

"We still need people to tell machines what to do and verify what they produce," said Cloudfactory Kenya director Festus Kiragu. "And that is creating jobs -- lots of jobs."

Kenya certainly needs them. Roughly a million people turn 18 in the east African country each year. Eighty percent end up in informal, poorly paid work, fuelling social unrest that has lately spilt over into violent protest.

Traditional outsourcing is already booming.

In the swanky recently built offices of CCI in Tatu City, a new town on Nairobi's outskirts, some 5,000 staff answer calls from customers of US airlines, banks and retailers.

The firm hopes to double its personnel by 2030 and receives hundreds of hopeful candidates each week.

"It's an entry-level job, let's not sugar-coat it, but you get a chance and you can build a real career," said CCI Kenya CEO Rishi Jatania, who said he started "on the phones" himself.

- Mental health impact -

Africa currently accounts for just two percent of the world's business outsourcing.

But rising wages in established hubs like India and the Philippines are pushing firms towards the continent.

Kenya is a frontrunner thanks to its educated, English-speaking, tech-savvy youth and good internet.

Some 35,000 employees already work in outsourcing, and that could rise to 100,000 within three or four years with the right nudge from the government, according to Genesis, a global consultancy.

However the push to grow the sector has not been universally welcomed.

Last year a court ruled social media giant Meta could be sued in Kenya over working conditions at the outsourcing firm Sama, tasked with removing violent and hateful content from Facebook.

Critics have also long alleged that moderation work poses a high risk to the mental health of workers.

And overseas firms have frequently come under fire for outsourcing tasks to exploit cheap labour costs while investing little in their local employees' futures -- or the economies of host nations like Kenya.

Meta argued it was not the direct employer, and many in the sector fear the Sama case will scare off clients, though it has taught them lessons.

"Content moderation is still critical and our workers want those jobs because they pay a premium," said Kiragu, the Cloudfactory chief.

"But that work needs to be on a rotational basis -- do it for two months and then do something else."

- Long-term view -

The recently formed Outsourcing Association of Kenya is pushing for cheaper work permits and tax breaks to help it compete with Asia.

But with debt-ridden Kenya in urgent need of revenue, the negotiations with the government have been tough.

"We also need the government to market Kenya as (an outsourcing) centre, the same way they do for tourism," said Kiragu.

Sometimes that means changing investors' outdated perceptions of Africa.

"I've been asked... 'Are there giraffes and lions outside your window?'," said CCI's Jatania with a chuckle.

Looming over everything is AI, which created those new jobs and could just as quickly destroy them if education and training do not keep pace.

"Customer experience jobs at call centres are great for entry-level but they are the most vulnerable to AI," said Betty Maina, a Kenyan former trade and industrialisation minister now with the Genesis consultancy.

"Reskilling people for the new demand is going to be critical."

For now, there is still plenty of work for humans, insisted Jatania.

"If you miss your flight... the last thing you want to do is talk to a bot."

K.Pokorny--TPP