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Kenyan firms are increasingly tapping into the booming artificial intelligence (AI)-powered outsourcing market, creating significant job opportunities.
Cloudfactory, a company based in a Nairobi suburb, exemplifies this trend by assisting international clients with diverse AI-related tasks, including tracking shoplifters, monitoring lung damage from COVID-19, and identifying whales.
Started in 2014 with basic transcription services, Cloudfactory has expanded dramatically since 2024, taking on complex AI-driven work. This shift is fuelling hopes that Africa, particularly Kenya, could become a new hub for digital outsourcing.
The company currently employs 130 staff and 3,000 freelancers to train AI for tasks like analysing medical X-rays, assessing roof damage for insurers, and verifying carbon-offsetting projects.
Cloudfactory Kenya director Festus Kiragu emphasises, “We still need people to tell machines what to do and verify what they produce. And that is creating jobs—lots of jobs.” This is crucial for Kenya, where approximately one million youth turn 18 annually, with 80% ending up in poorly paid informal work, contributing to social unrest.
Africa’s Growing Potential and Lingering Concerns
Traditional outsourcing is also flourishing in Kenya, with firms like CCI in Tatu City employing thousands to handle customer service for US companies.
CCI Kenya CEO Rishi Jatania, who started “on the phones” himself, highlights these as valuable entry-level positions that can lead to career growth.
Currently, Africa accounts for only two per cent of the global business outsourcing market. However, rising wages in established hubs like India and the Philippines are pushing companies towards the continent.
Kenya is a strong contender due to its educated, English-speaking, and tech-savvy youth, coupled with good internet infrastructure.
Consultancy firm Genesis estimates that Kenya’s outsourcing workforce could grow from 35,000 to 100,000 within three to four years with government support.
However, this growth is not without its challenges. A recent Kenyan court ruling allowed social media giant Meta to be sued over working conditions at its content moderation outsourcing firm, Sama, raising concerns about the mental health impact of such work.
Critics also accuse foreign firms of exploiting cheap labour without sufficiently investing in local employees’ futures or the host nations’ economies.
While Meta argued it wasn’t the direct employer, the case has prompted lessons within the sector.
Kiragu of Cloudfactory notes that content moderation jobs pay well but should be rotational to protect workers’ well-being.
The newly formed Outsourcing Association of Kenya is advocating for policies like cheaper work permits and tax breaks to boost competitiveness, though negotiations with the debt-ridden government are challenging. They also seek government efforts to market Kenya as an outsourcing destination, similar to tourism.
Looming over the industry is the dual nature of AI, which creates new jobs but could also displace existing ones, underscoring the critical need for continuous education and reskilling.
Despite AI’s advancements, Jatania asserts that human interaction remains vital for complex customer service issues.
