Kenyan companies are joining the fast-growing global artificial intelligence (AI) outsourcing market, creating thousands of jobs for the country’s young people.
Cloudfactory, based in a Nairobi suburb, stands out as one of the pioneers. The company began in 2014 with simple transcription tasks. But since 2024, it has expanded into advanced AI support work.
The firm now helps global clients track shoplifters, monitor COVID-19 lung damage, and even identify whales using machine learning tools.
Cloudfactory employs 130 full-time staff and 3,000 freelancers in Kenya. Their jobs include analysing medical X-rays, estimating roof damage for insurance companies, and verifying carbon-offsetting claims.
“We still need people to tell machines what to do and verify what they produce. And that is creating jobs—lots of jobs,” said Festus Kiragu, Cloudfactory’s Kenya director.
A Promising Sector With a Tough Road Ahead
With nearly one million Kenyan youth turning 18 every year—and 80% ending up in informal, poorly paid jobs—AI outsourcing is seen as a game-changer.
Traditional outsourcing is also thriving. Companies like CCI, based in Tatu City, employ thousands to handle customer service for American clients.
CCI Kenya’s CEO, Rishi Jatania, said he started “on the phones” himself. He believes the work gives young people an entry point into the digital economy.
Currently, Africa only makes up 2% of the global outsourcing market. But rising wages in India and the Philippines are pushing more firms to consider the continent.
Kenya is attracting attention due to its English-speaking, tech-savvy youth and strong internet access. Consulting firm Genesis estimates that with proper support, Kenya’s outsourcing workforce could rise from 35,000 to 100,000 within the next four years.
However, the road isn’t smooth.
A recent court ruling in Kenya allowed social media giant Meta to be sued over work conditions at Sama, its local content moderation firm. The case raised mental health concerns and exposed the darker side of outsourced digital work.
“Content moderation jobs pay well but should be rotational,” Kiragu noted. He said this protects workers from burnout and trauma.
Advocacy, Wages, and the AI Paradox
Critics argue that foreign tech firms often exploit cheap African labour without investing in workers or communities.
Some employers deny responsibility by claiming they’re not the direct hirers, as Meta did in the court case. But the case has forced the sector to reflect.
To boost the industry, Kenya’s new Outsourcing Association is pushing for easier work permits, tax breaks, and government-led marketing efforts similar to tourism campaigns.
Yet, talks with the country’s debt-strapped government have proved slow and difficult.
AI itself brings a strange twist. While it is creating new job categories, it also threatens to eliminate others—making it urgent to retrain and upskill the current workforce.
Jatania of CCI added that AI can assist with simple customer issues, “but for complicated problems, we still need people to handle them.”
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