Kenya's BPO Boom at Risk from Automation: AI Upskilling Needed

Kenya’s BPO market is experiencing substantial growth, with revenues expected to hit US $272.10 million in 2025, reflecting an annual growth rate of 5.96%. This trend is set to result in a projected market volume of US $343.00 million by 2029. The Kenyan government is also working to create 1 million BPO/ITES jobs within the next five years through supportive policies and incentives.

However, the growth could be hindered by the rise of automation. New research from Caribou and Genesis Analytics, in partnership with the Mastercard Foundation, highlights Customer Experience roles – which make up 44% of current employment in the African BPO sector – as especially vulnerable, with half of the tasks at risk of automation. The report further forecasts that 40% of tasks in Africa’s tech outsourcing sector, including BPO (Business Process Outsourcing) and ITES (IT-Enabled Services), could be automated by 2030, opening up new pathways for workers to transition into higher-skilled, higher-paying positions. With just 10% of tasks fully resilient to automation, strategic investments in AI upskilling and training will be essential to unlocking Africa’s $35 billion BPO potential by 2028.

Rodwell Mangisi, Director of Digital Economy Pan African Programs at the Mastercard Foundation, commented:

“Africa’s tech outsourcing industry is growing rapidly, adding new jobs and opportunities every year. As AI reshapes global business processes, Africa has the potential to lead by ensuring its workforce is AI-ready. By investing in targeted upskilling programs, particularly for women and young professionals, we can ensure that this 6% annual growth translates into sustainable, high-value employment benefiting all demographics.”

AI is already deeply integrated into Africa’s BPO and ITES sectors, driving efficiency and innovation. Workers are utilizing tools like ChatGPT, Microsoft Copilot, and in-house chatbots to boost productivity, creativity, and accuracy. These AI-powered technologies assist with tasks such as coding, debugging, content generation, and customer service, allowing employees to focus on strategic problem-solving, decision-making, and higher-value activities. As a result, workers are presented with opportunities for career advancement and progression into higher-level roles.

However, despite these opportunities, AI’s rapid growth could impact certain positions in the BPO sector. Entry-level jobs, which account for 68% of the workforce, are particularly vulnerable, with more than half of their tasks automatable. To futureproof the sector, AI-driven upskilling programs are crucial, enabling workers to transition into higher-skilled, better-compensated roles in cybersecurity, AI management, and data services.

Charlene Migwe, Program Director at Caribou, stated:

“Africa’s tech outsourcing sector is at a pivotal moment. With the right investments in skills development, ethical AI, and inclusive policies, we can transform the risks of automation into new opportunities for innovation and resilience.”

While AI offers significant opportunities, it also presents challenges, especially for women and youth, who predominantly occupy entry-level roles. The report reveals that tasks performed by women are, on average, 10% more vulnerable to automation than those performed by men in the sector. This disparity could worsen gender-based inequalities in the workforce unless addressed proactively.

Customer Experience roles, which make up 44% of employment in the BPO sector, are among the most affected, with half of the tasks in these positions at risk of automation. Similarly, Finance and Accounting roles in the BPO sector face comparable challenges, with nearly two-thirds of junior-level tasks vulnerable to automation.

If no intervention occurs, these changes could disproportionately impact the livelihoods of young workers and women in the sector. To mitigate these risks, the report emphasizes the urgent need for equitable AI upskilling and reskilling programs to ensure all demographics can transition into future-proof roles.

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