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

EUR -
AED 4.239245
AFN 72.116169
ALL 95.251878
AMD 425.017039
ANG 2.066765
AOA 1059.667159
ARS 1668.600407
AUD 1.635038
AWG 2.080664
AZN 1.96334
BAM 1.957285
BBD 2.322913
BDT 141.5656
BGN 1.927624
BHD 0.434924
BIF 3440.351406
BMD 1.154321
BND 1.486328
BOB 7.99807
BRL 5.992056
BSD 1.15325
BTN 110.323295
BWP 15.652812
BYN 3.235956
BYR 22624.692746
BZD 2.31951
CAD 1.609013
CDF 2654.938292
CHF 0.919787
CLF 0.026927
CLP 1059.955215
CNY 7.809732
CNH 7.830089
COP 4160.450132
CRC 532.192375
CUC 1.154321
CUP 30.589508
CVE 110.348748
CZK 24.208187
DJF 205.374977
DKK 7.473877
DOP 67.180695
DZD 154.309362
EGP 60.082183
ERN 17.314816
ETB 185.940217
FJD 2.557285
FKP 0.864902
GBP 0.8648
GEL 3.070308
GGP 0.864902
GHS 13.626342
GIP 0.864902
GMD 84.265618
GNF 10109.453504
GTQ 8.792521
GYD 241.292081
HKD 9.045843
HNL 30.839871
HRK 7.536793
HTG 150.791829
HUF 355.834493
IDR 20982.959621
ILS 3.381041
IMP 0.864902
INR 110.270502
IQD 1510.820443
IRR 1587335.745617
ISK 143.401352
JEP 0.864902
JMD 182.068179
JOD 0.818416
JPY 184.79014
KES 149.427361
KGS 100.945026
KHR 4630.494202
KMF 494.049139
KPW 1038.721863
KRW 1764.240959
KWD 0.357089
KYD 0.961125
KZT 561.686554
LAK 25357.805656
LBP 103280.283365
LKR 388.808345
LRD 210.477004
LSL 19.055932
LTL 3.40841
LVL 0.698238
LYD 7.333566
MAD 10.665294
MDL 20.091161
MGA 4853.578449
MKD 61.645858
MMK 2423.265687
MNT 4131.070709
MOP 9.308744
MRU 46.085978
MUR 55.288441
MVR 17.834596
MWK 1999.909145
MXN 20.117486
MYR 4.701781
MZN 73.772266
NAD 19.055932
NGN 1571.5039
NIO 42.441475
NOK 10.914146
NPR 176.519203
NZD 1.982939
OMR 0.443844
PAB 1.153355
PEN 4.003469
PGK 5.126891
PHP 71.019025
PKR 320.997827
PLN 4.2404
PYG 7097.386479
QAR 4.2163
RON 5.242577
RSD 117.370108
RUB 84.207348
RWF 1693.678061
SAR 4.333089
SBD 9.290649
SCR 15.458572
SDG 693.1573
SEK 10.869439
SGD 1.486575
SHP 0.861817
SLE 28.399787
SLL 24205.537866
SOS 659.097359
SRD 43.069446
STD 23892.115346
STN 24.518077
SVC 10.09144
SYP 127.589528
SZL 19.041121
THB 37.869237
TJS 10.789342
TMT 4.040124
TND 3.392475
TOP 2.779328
TRY 53.216398
TTD 7.811759
TWD 36.390893
TZS 3030.090497
UAH 51.483773
UGX 4348.281242
USD 1.154321
UYU 46.455458
UZS 13816.186406
VES 649.403811
VND 30410.588286
VUV 136.532616
WST 3.14785
XAF 656.452363
XAG 0.016885
XAU 0.000267
XCD 3.11961
XCG 2.078532
XDR 0.817728
XOF 656.466592
XPF 119.331742
YER 275.449816
ZAR 19.037638
ZMK 10390.275805
ZMW 20.269383
ZWL 371.69091
  • RBGPF

    1.4900

    61.5

    +2.42%

  • JRI

    -0.1450

    12.455

    -1.16%

  • CMSC

    -0.0250

    22.445

    -0.11%

  • RELX

    -0.6250

    34.525

    -1.81%

  • BCE

    -0.3550

    24.055

    -1.48%

  • RIO

    0.7200

    101.41

    +0.71%

  • RYCEF

    -0.3300

    16.52

    -2%

  • GSK

    -0.9200

    50.6

    -1.82%

  • CMSD

    -0.0900

    22.43

    -0.4%

  • BCC

    0.3250

    68.405

    +0.48%

  • AZN

    -3.7800

    182.17

    -2.07%

  • VOD

    0.1100

    14.81

    +0.74%

  • BTI

    -0.0550

    59.665

    -0.09%

  • BP

    0.6900

    43.66

    +1.58%

  • NGG

    -1.7150

    80.145

    -2.14%

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