The Fort Worth Press - Can Kenya attract the outsourcing jobs of the AI future?

USD -
AED 3.672499
AFN 63.000179
ALL 83.300828
AMD 376.082603
ANG 1.790083
AOA 916.999724
ARS 1396.2379
AUD 1.404573
AWG 1.8
AZN 1.697588
BAM 1.695579
BBD 2.009102
BDT 122.41324
BGN 1.709309
BHD 0.377638
BIF 2962.179501
BMD 1
BND 1.274843
BOB 6.893981
BRL 5.1945
BSD 0.99753
BTN 92.131568
BWP 13.556105
BYN 2.992462
BYR 19600
BZD 2.006494
CAD 1.37006
CDF 2264.999815
CHF 0.785297
CLF 0.022981
CLP 907.41002
CNY 6.88685
CNH 6.876325
COP 3700.61
CRC 467.636502
CUC 1
CUP 26.5
CVE 95.594164
CZK 21.161101
DJF 177.62753
DKK 6.47193
DOP 60.895046
DZD 132.078871
EGP 52.3777
ERN 15
ETB 155.751565
EUR 0.86609
FJD 2.206598
FKP 0.749449
GBP 0.747865
GEL 2.710052
GGP 0.749449
GHS 10.86981
GIP 0.749449
GMD 73.502214
GNF 8743.145712
GTQ 7.642158
GYD 208.726712
HKD 7.837798
HNL 26.40577
HRK 6.527401
HTG 130.865428
HUF 336.230061
IDR 16921
ILS 3.09105
IMP 0.749449
INR 92.432501
IQD 1306.920393
IRR 1313999.999653
ISK 124.369894
JEP 0.749449
JMD 156.945191
JOD 0.70899
JPY 158.671497
KES 129.350195
KGS 87.44992
KHR 4003.554477
KMF 427.000164
KPW 899.9784
KRW 1485.82981
KWD 0.30651
KYD 0.831401
KZT 480.712629
LAK 21409.219966
LBP 89340.205381
LKR 310.678602
LRD 182.570851
LSL 16.690089
LTL 2.952741
LVL 0.60489
LYD 6.385819
MAD 9.355423
MDL 17.403932
MGA 4152.905994
MKD 53.393328
MMK 2100.10344
MNT 3571.101739
MOP 8.052797
MRU 39.686682
MUR 46.510353
MVR 15.450041
MWK 1729.925615
MXN 17.62895
MYR 3.908499
MZN 63.910123
NAD 16.690089
NGN 1357.230463
NIO 36.715143
NOK 9.573995
NPR 147.412134
NZD 1.703475
OMR 0.384498
PAB 0.997685
PEN 3.409972
PGK 4.304403
PHP 59.515981
PKR 278.501192
PLN 3.688455
PYG 6466.432627
QAR 3.637459
RON 4.4112
RSD 101.709887
RUB 82.375001
RWF 1459.088308
SAR 3.754511
SBD 8.045182
SCR 14.281817
SDG 601.000219
SEK 9.266703
SGD 1.275945
SHP 0.750259
SLE 24.593911
SLL 20969.510825
SOS 569.157145
SRD 37.624988
STD 20697.981008
STN 21.240258
SVC 8.729275
SYP 110.58576
SZL 16.690504
THB 32.2845
TJS 9.562537
TMT 3.51
TND 2.940952
TOP 2.40776
TRY 44.211499
TTD 6.769111
TWD 31.82901
TZS 2603.729813
UAH 43.827504
UGX 3766.027725
UYU 40.555888
UZS 12106.894384
VES 447.80816
VND 26300
VUV 119.592862
WST 2.733704
XAF 568.686387
XAG 0.012588
XAU 0.0002
XCD 2.70255
XCG 1.798045
XDR 0.707147
XOF 568.592727
XPF 103.392373
YER 238.550178
ZAR 16.63183
ZMK 9001.182634
ZMW 19.459797
ZWL 321.999592
  • CMSC

    -0.0400

    22.95

    -0.17%

  • CMSD

    -0.0700

    22.88

    -0.31%

  • RIO

    -0.0600

    89.8

    -0.07%

  • BCE

    0.1100

    26.01

    +0.42%

  • NGG

    -0.4700

    90.42

    -0.52%

  • BCC

    1.2000

    72.92

    +1.65%

  • GSK

    -0.3600

    53.41

    -0.67%

  • RBGPF

    0.1000

    82.5

    +0.12%

  • BP

    0.9500

    43.85

    +2.17%

  • BTI

    -0.3900

    60.55

    -0.64%

  • AZN

    -0.7200

    191.29

    -0.38%

  • JRI

    -0.0800

    12.46

    -0.64%

  • RYCEF

    0.6900

    16.81

    +4.1%

  • RELX

    -0.1800

    34.29

    -0.52%

  • VOD

    0.1500

    14.75

    +1.02%

Can Kenya attract the outsourcing jobs of the AI future?
Can Kenya attract the outsourcing jobs of the AI future? / Photo: © 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."

M.Delgado--TFWP