- To unlock Kenya’s potential, the government acknowledges the need to address legal challenges hindering job creation in the digital sector.
- Kenya’s current labor laws were created in 2007 when the digital economy was young.
- Globally, the digital economy is emerging as a transformative force in economies, helping create jobs.
The Government of Kenya, through the State Department for Industrialization, has reaffirmed its commitment to collaborate with industry stakeholders to address gaps in the country’s labour laws that are hindering job creation in the burgeoning digital economy.
During a visit to Sama, a firm dealing in provision of data annotation solutions that power the AI models of the future, the Principal Secretary State Department for Industrialization Dr. Juma Mukhawana, assured a closer working relationship with Business Process Outsourcing (BPO) industry stakeholders.
The focus of the engagements will be to address gaps in the labour laws and to prime the rapidly evolving digital economy to create jobs for the youth.
Outdated labour laws
The PS acknowledged that current labor laws were created in 2007 when the digital economy was young. Kenya now aims to collaborate with the private sector to update these laws. The goal is to align them with the realities of the present-day digital economy.
To unlock Kenya’s potential, the government acknowledges the need to address challenges hindering job creation in the digital sector. Dr. Mukhawana stated that they plan to work with the industry to create a conducive environment for digital businesses.
In recent years, the digital economy has emerged as a transformative force globally. Due to a pool of talent and good infrastructure, Kenya has continued to attract global tech companies, including Sama. However, challenges to some labour laws hold the industry from its optimal potential.
To fully harness this potential, the Government acknowledges the need to identify and address challenges that hinder growth of the digital sector.
Global labour market
The global BPO market is estimated to be valued at over $262 billion. At the moment, African countries continue to emerge as the next BPO growth frontiers. The BPO sector is crucial in developing Artificial Intelligence (AI) systems that power the automotive, retail, agricultural and food technology sectors.
During the tour, Lilian Kiplang’at, Sama’s Director of Global Service Delivery, highlighted the partnership’s importance. She emphasized how it propels Kenya into the digital era. The collaboration between the government and industry stakeholders is a significant milestone. It aims to make Kenya a digital powerhouse and a prominent player in the global digital economy.
“The digital economy is a catalyst for job creation and economic advancement in Kenya. At Sama, with the right operating environment, we have the potential to create thousands of jobs by 2024. We welcome the opportunity to collaborate with the Government to develop clear and progressive policies that foster a conducive business environment for the digital economy to ensure it remains competitive on a global scale,” Kiplang’at said.
Sama has been in Kenya for the last 15 years and continues to provide quality formal jobs for Kenyans. The firm is providing value chain AI solutions for self-driving cars, and virtual reality gaming consoles. Sama is also into fashion segmentation and agricultural solutions for crop disease protection.
Kenya is targeting a million jobs in the next three years from BPO in the digital space. With close to one million graduates entering the job market annually, unemployment is a concern for policymakers. Joblessness is forcing the government to embark on initiatives and programmes that encourage self-employment
