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KEPSA
7th Floor, South Tower, Two Rivers, Limuru Rd, Nairobi.
info@kepsa.or.ke
On 15th of November, the Kenya Private Sector Alliance through the Ajira Digital Program, together with the Ministry of Information Technology and Communication and its implementing partner eMobilis held a meeting with Business Processing Outsourcing(BPO) representatives in Nyeri County. The Delegation led by Madam Mary Kerema, the Secretary ICT, E-Government additionally held a meeting with Nyeri County Governor to discuss areas of collaboration for the County and National government for the BPO Sector.
Kenya's BPO sector is rapidly growing, benefiting from its strategic location in East Africa, a tech-savvy and youthful workforce, and strong government support. The country’s high levels of English literacy and competitive labour costs make it an attractive destination for outsourcing. Kenya’s BPO activities include customer support, IT services, data management, finance and accounting, and content moderation. Nyeri County particularly, has emerged as a significant hub for the BPO sector, with leading companies such as JITU Technologies, Teach2give, Jitu Staffing, Griffin Global Tech, and ONQ Kenya collectively employing over 1,000 young individuals.
Nyeri County has emerged as a prominent hub for the BPO sector in Kenya, driven by several strategic advantages. Its demographic profile, characterized by a youthful and educated population, provides a robust workforce essential for BPO operations. The county is home to universities and institutions that are committed to lifelong learning and equipping students with skills aligned to the demands of the digital economy. These institutions play a pivotal role in producing a steady stream of skilled talent ready for the job market. Additionally, Nyeri boasts a growing economy bolstered by county grants and a supportive local government. This economic growth is complemented by investor-friendly policies that create an enabling environment for businesses to thrive.
Speaking during the engagement, Mr Benjamin Gachichio, County Secretary (Head of Public Service), while representing the Governor of Nyeri county, spoke on the benefits brought about by the BPO sector in Nyeri in empowering the lives of young people and the community in general. He stressed on the county government’s commitment to supporting this sector to enhance a digitally thriving economy. Madam Mary Kerema emphasized on the government’s commitment to transform the economy through initiatives in digital skilling and job creation as a way to uplift the youth. Additionally, she noted the need to use Nyeri County as a model to demonstrate how counties can replicate and scale digital job opportunities for Kenyan youth, fostering economic growth and reducing unemployment.
Representing the Private Sector, Dr Ehud Gachugu, Ag. Deputy CEO and Global Director of Youth & Jobs at KEPSA highlighted the critical role of the BPO sector in creating employment opportunities, particularly for the youth, while driving Kenya's economic growth. He emphasized that the sector holds immense potential to empower young people by connecting them to meaningful digital jobs, ultimately contributing to a thriving economy. Dr. Ehud also underscored the importance of collaboration between the government and private sector to establish a favourable business environment that attracts and supports investors, ensuring the sustainable development of the BPO industry in Kenya.
Some of the challenges that affect the BPO Sector in Kenya that were picked during the meeting included; infrastructure gaps, including unreliable power supply and high internet costs, lack of incentives for BPOs and harsh taxes that affect investors. Addressing these challenges requires investments in skill development and infrastructure, along with efforts and policies to enhance the global perception of Kenya as a reliable BPO destination.
KEPSA continues to play a critical role in addressing the above challenges and accelerating the transformation of the BPO sector in Kenya by acting as a bridge between the government, private sector, and other stakeholders to create an enabling environment for growth and investment. KEPSA has actively continued to engage with the government to advocate for policies that support the growth of the BPO sector. This includes addressing challenges such as taxation, internet stability, power supply, and creating incentives for investors. KEPSA's efforts in policy reforms, including proposing amendments to existing bills and frameworks, ensure that the BPO sector remains competitive and attractive to global players
By strategically focusing on digital economy initiatives and fostering collaboration between the public and private sectors, other counties and Kenya in general can position itself as an attractive destination for BPO investments. These factors collectively make Nyeri a model county for replicating and scaling digital job opportunities through the Ajira Digital program across Kenya.