Grace Ashiru
Kenya’s parliament has introduced the Business Law (Amendment) Bill 2024, aimed at regulating business process outsourcing (BPO) and IT-enabled service (ITES) companies amidst increasing scrutiny over worker conditions.
This move comes in the wake of a September 2024 court ruling that permitted BPO firms to be sued locally. The case was sparked by former Sama employees who alleged they were moderating harmful content for clients like Meta under exploitative conditions with insufficient safeguards. According to one report, three Sama employees claimed they were paid just $2 per hour, significantly below the $12 proposed by business partners.
The new bill mandates that employers provide all tools required for employees to perform their duties, regardless of ownership, and explicitly prohibits employers from avoiding liability by arguing they are not direct beneficiaries of the services provided.
While the legislation aims to curb exploitation and bring Kenya’s labour standards in line with global norms, it has raised concerns among industry stakeholders. A commercial lawyer told TechCabal that the bill’s requirement for employers to supply “necessary tools” and its stringent liability provisions might deter major outsourcing firms wary of heightened operational risks and compliance costs.
“An employer operating as a Business Process Outsourcing company or as a provider of Information Technology Enabled Services shall be liable for any claims made by an employee relating to their contract of service. Such employers cannot, in defence of these claims, argue that they were not the actual beneficiaries of the employee’s services,” reads a section of the bill obtained by TechCabal.
Sama, which previously provided content moderation services for Meta, exited the business following legal disputes involving over 180 former employees. These employees accused the company of unfair dismissal and failing to protect them from the psychological impact of moderating harmful online content.
After ceasing its moderation operations, Sama has pivoted to AI labeling services, catering to major technology companies like Microsoft, Google, and the e-commerce platform Walmart.
Meanwhile, Meta faces a separate lawsuit alleging that its algorithm incited ethnic violence in Ethiopia. The case, led by Mercy Mutemi of Nzili and Sumbi Advocates, seeks to halt the recommendation of harmful content and establish a $1.6 billion victim compensation fund.
Balancing the protection of worker rights with maintaining business competitiveness is essential, a legal expert told TechCabal. Without proper implementation, the bill could hinder Kenya’s growing reputation in the global outsourcing industry. Companies like Sama and Majorel have already employed over 3,000 Kenyans, highlighting the sector’s significance.
