Kenya is rapidly establishing itself as a prominent player in the Global Business Services (GBS) market, attracting over USD 500 million in annual revenues.
The country’s GBS market, which includes the thriving Business Process Outsourcing (BPO) sector, is projected to generate USD 254 million in 2024, accounting for more than half of these revenues.
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Competitive Advantage in the GBS Market
Kenya’s emergence as an attractive investment destination in the highly competitive GBS market is attributed to several factors.
The country’s BPO sector has evolved to include AI supply chain providers, such as Sama, further diversifying its offerings.
The GBS market reached USD 1 trillion in revenues last year, with established players like South Africa, Egypt, Tunisia, and Morocco competing in the maturing league.
However, Kenya stands out among emerging GBS destinations, including Senegal, Nigeria, Mauritius, Zimbabwe, Rwanda, and Ghana.
Projected Growth and Economic Impact
At current growth rates, Kenya is poised to become the leading provider of digital work opportunities, generating a positive local economic ripple effect.
Studies show that digital work increases formal employment opportunities and is the fastest-growing sector.
Wendy Gonzalez, CEO of Sama AI, projects that Kenya will continue to strengthen its market positioning and deepen the GBS market opportunity by providing an enabling environment.
To maintain its competitive edge, Kenya must address the significant gaps in basic and advanced digital skills, particularly in rural areas and among women.
By 2030, an estimated 50–55% of jobs in Kenya will require digital skills.
To help bridge this gap, Sama has collaborated with the University of Nairobi to advance AI skills, one of the first partnerships of its kind in Kenya.
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Government Support and Ethical AI Development
The Kenyan government is actively supporting the growth of the GBS market by establishing policies and frameworks that foster innovation, invest in research and development, and protect the rights and interests of all citizens.
Principal Secretary Eng. John Tanui of the State Department for ICT and the Digital Economy emphasized the importance of embracing AI as a present reality and the potential for Generative AI to add between $2.6 and $4.4 trillion USD annually to the global economy.
Partnerships and Education
The University of Nairobi, led by Acting Vice Chancellor Prof. Margaret Hutchinson, is committed to equipping students with the skills necessary to navigate the digital economy.
The partnership between Sama and the University of Nairobi aims to advance generative AI capabilities in Kenya and Africa as a whole, providing part-time employment opportunities for UoN faculty and students while bridging the digital divide and positioning Kenya as a global AI value chain leader.
Lastly, Kenya’s emergence as a leading GBS market destination is a testament to its competitive advantages, projected growth, and commitment to bridging the digital skills gap.
With government support, partnerships, and a focus on ethical AI development, Kenya is poised to solidify its position as a global player in the GBS market.
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