Kenya’s Business Process Outsourcing [BPO] industry is growing fast, with projected revenues reaching US $272.1 million in 2025. This is expected to hit US $343 million by 2029. The government aims to create one million BPO and IT-enabled services – ITES jobs over the next five years through supportive policies and incentives.
However, automation is emerging as a major challenge. A report by Caribou and Genesis Analytics, supported by the Mastercard Foundation, shows that 44% of BPO jobs especially in Customer Experience, are at risk, with half of their tasks automatable. Overall, 40% of tasks in Africa’s BPO and ITES sectors could be automated by 2030. While this threatens many jobs, it also opens doors for workers to move into higher-paying, more technical roles. Only 10% of tasks are fully resistant to automation, making AI-focused training essential to unlock the sector’s full $35 billion potential by 2028.
AI Disruption
Rodwell Mangisi from the Mastercard Foundation notes that Africa’s tech outsourcing industry is growing steadily and can thrive by preparing workers, especially women and youth for an AI-driven future. He emphasizes targeted upskilling to create long-term, high-value employment.
AI tools like ChatGPT and Microsoft Copilot are already improving productivity and creativity in the sector.
AI tools like ChatGPT and Microsoft Copilot are already improving productivity and creativity in the sector. These tools help with tasks like coding, content creation, and customer service, allowing workers to take on more strategic roles. However, entry-level jobs, which make up 68% of the workforce, are most at risk, with over half their tasks automatable.
Charlene Migwe from Caribou highlights that this is a turning point for Africa’s tech outsourcing industry. She calls for ethical AI development and inclusive training to turn automation risks into opportunities.
The report warns that automation may widen gender inequality, as tasks done by women are 10% more automatable than those by men. Customer Experience and Finance roles face the highest risk. Without immediate action, automation could harm the livelihoods of young people and women. Equitable upskilling and reskilling are critical to help all workers move into secure, future-ready careers.
