Kenya is rapidly establishing itself as a key player in the Global Business Services (GBS) market, generating over $500 million annually, according to Sama AI CEO Wendy Gonzalez. More than half of this revenue, approximately $254 million, is expected to come from business process outsourcing (BPO) by 2024, positioning Kenya as a leading destination in the competitive global arena.
The country’s appeal as an investment hub in the GBS market, which includes the burgeoning BPO sector, has been significantly boosted by the entry of AI supply chain providers like Sama. Gonzalez highlighted that BPO is evolving, with companies increasingly integrating AI into their operations, further solidifying Kenya’s place in the global market.
During a public lecture on Generative AI at the University of Nairobi, Gonzalez noted that the GBS market generated $1 trillion in revenue globally last year, with South Africa, Egypt, Tunisia, and Morocco among the mature markets. Kenya’s $500 million contribution places it ahead of other emerging GBS destinations such as Senegal, Nigeria, Mauritius, Zimbabwe, Rwanda, and Ghana. At its current growth rate, Kenya is on track to become the leading provider of digital work opportunities in Africa, with significant positive effects on the local economy.
“Digital work is the fastest-growing sector and significantly boosts formal employment opportunities. Kenya has made remarkable strides despite fierce competition and must remain vigilant to maintain its market position by creating an enabling environment to further expand the GBS market,” Gonzalez stated. She emphasized that Kenya’s success is largely due to the high quality of its human capital, which is versatile and well-trained, particularly in areas like Generative AI. However, she warned that other countries are aggressively vying to displace Kenya from its growth trajectory, necessitating a strong focus on securing its market position.
Gonzalez also addressed the skills gap that needs to be bridged for Kenya to secure its position in the global market, projecting that by 2030, 50-55% of jobs in Kenya will require digital skills. She highlighted the significant disparities in basic and advanced digital skills, particularly in rural areas and among women. To help close this gap, Sama has partnered with the University of Nairobi in a pioneering initiative to advance AI skills, marking one of the first collaborations of its kind in Kenya.
At the same event, Principal Secretary of the State Department for ICT and the Digital Economy, Eng. John Tanui, stressed the importance of embracing AI, stating, “We are living in an era where AI is no longer science fiction; it is our present reality. The sooner we fully embrace it, the better prepared we will be for the future.” He noted that Generative AI could add between $2.6 and $4.4 trillion annually to the global economy. To capitalize on this growth, Kenya’s government is working on policies and frameworks to foster innovation, invest in research and development, and ensure that AI is developed and used ethically.
Tanui further emphasized the critical role of partnerships and education in STEM fields in preparing Kenya’s workforce for the future. He called for the development of ethical guidelines that govern AI use, ensuring it upholds human dignity and values. “As a government, we are committed to creating policies and a regulatory framework that encourages innovation while protecting the rights and interests of all citizens,” Tanui added.
Prof. Margaret Hutchinson, Acting Vice Chancellor of the University of Nairobi, highlighted the university’s role in preparing students for the digital economy. “The University of Nairobi is dedicated to closing the gap between academia and industry, ensuring our graduates are not only job-ready but also future-ready,” she said.
The partnership between Sama and the University of Nairobi is set to enhance Generative AI capabilities in Kenya and across Africa. This collaboration will offer part-time employment opportunities for faculty and students, providing them with practical experience in AI. This initiative aligns with the broader objective of bridging the digital divide and positioning Kenya as a leader in the global AI value chain.
