logo
Can Kenya attract the outsourcing jobs of the AI future?

Can Kenya attract the outsourcing jobs of the AI future?

Time of India09-07-2025
By Eric Randolph
Nairobi: 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.
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."
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

MoS Margherita says India, South Africa relations based on mutual trust
MoS Margherita says India, South Africa relations based on mutual trust

News18

time2 hours ago

  • News18

MoS Margherita says India, South Africa relations based on mutual trust

Last Updated: Johannesburg, Jul 26 (PTI) 'Relations between India and South Africa are based on shared history, mutual trust and goodwill," said Union Minister of State for External Affairs Pabitra Margherita in South Africa on Saturday. 'India's engagement with Africa, including South Africa, is guided by the principles of Prime Minister Modi. Our engagement with Africa is not transitional; it is transformational," he said while addressing a gathering of Assamese expatriates and Indian-origin South Africans here. Margherita said that India regards its diaspora as one of its greatest assets while seeking their support 'to strengthen the India-South Africa relationships." He urged the diaspora to continue to launch new ventures, initiate joint projects, create more jobs and explore new markets together in India, South Africa and beyond. Margherita wrapped up his 10-day visit to three southern African countries–Eswatini, Lesotho and South Africa–on Saturday and left for Dubai. Earlier this week, Margherita participated in the 4th meeting of the G20 Development Working Group, held in the iconic Kruger National Park, hosted by South Africa, which currently holds the G20 Presidency. PTI FH RD RD RD Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

Economic ties with Beijing may be easing but with caution, says FM Sitharaman
Economic ties with Beijing may be easing but with caution, says FM Sitharaman

Time of India

time2 hours ago

  • Time of India

Economic ties with Beijing may be easing but with caution, says FM Sitharaman

New Delhi: Finance minister Nirmala Sitharaman on Saturday indicated the possibility of stepping up India-China business engagement, stating that various domestic stakeholders have been calling on the government to facilitate greater access to the Chinese market and investments, and that Beijing has also reached out for the purpose. "There is something, some kind of a beginning. As to how far it will go that's something we have to wait and see. But it might help the economy. However, a sense of caution would have to be built into it," Sitharaman said. She was speaking at a function held in Delhi for the release of a book in honour of economist Shankar Acharya. Explore courses from Top Institutes in Please select course: Select a Course Category Others Data Science Healthcare CXO PGDM Design Thinking Data Science Artificial Intelligence Public Policy Degree Digital Marketing healthcare Product Management Project Management Technology Management Leadership Finance Data Analytics Cybersecurity MCA MBA Operations Management others Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details Bilateral trade a priority India had put in place greater checks on foreign direct investment (FDI) from China and other bordering nations, suspended tourist visas and banned scores of Chinese apps after the Galwan clash in 2020 in Ladakh, initiated by Beijing's troops. The measures coincided with the onset of Covid-19. Later, the government extended visas to certain Chinese professionals to push the completion of Indian renewable projects. This week, India resumed tourist visas to the neighbouring country. In March, Beijing lifted visa curbs on Indian citizens. External affairs minister S Jaishankar this month visited China for the first time in six years and met President Xi Jinping amid efforts from both sides to reset ties. Sitharaman also said trade talks with the US and the European Union are going well. 'It is bilateral trade which is taking priority over multilateral trade,' she said, referring to the changed global environment.

IIM Udaipur to offer first-of-its-kind online bilingual BBA programme
IIM Udaipur to offer first-of-its-kind online bilingual BBA programme

Time of India

time2 hours ago

  • Time of India

IIM Udaipur to offer first-of-its-kind online bilingual BBA programme

The Indian Institute of Management (IIM) Udaipur is readying to launch a Bachelor of Business Administration (BBA), the first-of-its-kind online bilingual undergraduate programme across the IIMs. While some IIMs do offer undergraduate programmes or integrated programmes combining undergraduate and post-graduate degrees in management, IIM Udaipur 's offering seeks to open up access to the IIM brand to India's underserved learners. Explore courses from Top Institutes in Please select course: Select a Course Category Others healthcare Data Science Technology Product Management Degree Data Science Public Policy Management MCA Cybersecurity Leadership Digital Marketing Healthcare CXO Finance PGDM Project Management others Design Thinking Artificial Intelligence Operations Management Data Analytics MBA Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details 'For decades, management education in India has remained the preserve of a small, English-speaking, urban elite,' Prof Ashok Banerjee, director, IIM Udaipur, told ET, citing reasons including high cut-offs, residential requirements and an implicit expectation of cultural fluency. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 20 Breathtaking Blue Flag Beaches You Must Visit Click Here Undo IIM Udaipur's four-year BBA programme, set to be launched in July 2026, turns that on its head. 'It is designed for learners who have been historically excluded: students from Hindi-medium schools, rural and small-town youth, NEET (not in education, employment or training) learners, homemakers looking to resume education, first-generation college aspirants and students from non-commerce academic backgrounds,' said Banerjee. The unique aspect of this programme is its inclusive approach to language of instruction, aligned with the National Education Policy mission that aims to promote both Indian and foreign languages in education. While the programme offers Hindi as the primary medium of instruction in the first three years, students have the choice of opting for English right from the first year. Live Events The institute is deploying artificial intelligence (AI), using AI-based voice cloning and lip-syncing to allow students to access the same content in both languages, enhancing comprehension and accelerating English proficiency, without burdening faculty with additional work. The programme is structured to offer multiple exit points: a certificate after Year 1, a diploma after Year 2, a BBA after Year 3 and a BBA (Honours) after Year 4. This flexibility has been introduced keeping in mind that many learners, especially women or those from economically weaker backgrounds, cannot always commit to a residential course. The first year of the programme focuses on 'workplace survival and entrepreneurship', laying the groundwork for income generation and micro-enterprise; while the second year develops 'MSME and operations readiness', equipping students with the tools to manage or contribute meaningfully to micro, small and medium enterprises. The third year focuses on 'strategy and leadership', deepening skills in decision-making, finance and project execution, and the fourth year prepares learners for 'global and research readiness', transitioning to full English instruction and postgraduate preparedness. The programme is mobile-first, low-bandwidth friendly and largely asynchronous. Content will be hosted on public platforms like YouTube for easy access, and assessments will be conducted at regional centres. Tuition fee for the programme starts at Rs 50,000 per year and rises to Rs 2,00,000 by the fourth year. But merit-based and need-based scholarships are offered simultaneously. A student from a low-income household who performs well could pay Rs 87,500 for the entire three-year BBA, and Rs 1.37 lakh for the four-year honours degree.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store