The Competitive Edge of Partnering with a Kenyan BPO

How Government Support Makes a Difference

Business Process Outsourcing (BPO) is now one of Kenya’s leading growth drivers. With a projected revenue of $254.50 million in 2024, it is expected to grow at an average annual growth rate of 6.15%, reaching $343 million by 2029 (Statista). Though a substantial percentage of Kenya’s BPO clients are from the U.S.A., Kenya’s strategic location means it has an advantageous time zone that makes its workers efficiently serve clients from Europe, the rest of Africa, and the Middle East without significant adjustments in work time. Aside from the compelling factors that make investing in Kenya’s BPO sector advantageous, such as a young and educated workforce, English as an official government and media language, a developed IT infrastructure, and broad experience offering BPO services, including data entry, customer support, back-office operations, and finance technology (Statista), Kenya’s BPO industry enjoys overwhelming government support.

Kenya’s government has been actively working to boost its BPO industry for decades. In a recent release from the Republic of Kenya website on the government’s plan to create one million jobs in five years, President William Ruto recently shared several key strategies, including:

• Legislative Reforms: The Kenyan government is working to pass laws and policies to help facilitate the growth of IT-enabled services.
• Promoting and Investing in Infrastructure Development: The government will scale up IT-related infrastructure investments, including expanding broadband capabilities and digital hubs.
• Supporting Skills Training: Enhancing the skills of Kenyan youth through the “Bottom-Up Economic Transition Agenda” to meet industry requirements.Aligning Government Policy: Most importantly, President Ruto committed to aligning government policies to support the digital economy so it can satisfy international standards.

How the Government Supports the Kenyan BPO Industry:

Legislative Reforms:

One of President Ruto’s pronouncements was the government’s commitment to enact sector-specific legislation to support the BPO industry (Capitalfm). Recently, there was a move to amend Kenya’s Employment Act of 2007 to explicitly accommodate the working hours of BPO employees. Provisions will include facilitating safe commuting at night for BPO workers (UoN). President Ruto’s rejection of the 2024 Finance Bill was a landmark legislative move, which meant various tax increases, such as Value-added Tax (VAT) and digital services tax, wouldn’t be implemented. This move by the government helps BPO companies avoid additional operations expenses in the form of additional taxes (TeleSky).

Promoting and Investing in Infrastructure Development

The BPO industry started in Kenya in the 1990s. Though Kenya’s experience in the BPO field is mature, there were challenges and gaps initially in the Information and Communications Technology (ICT) field, particularly weak policies, infrastructure issues, funding constraints, and the digital divide across Kenya’s social sectors. As outlined in the wide-ranging government program Kenya Vision 2030 (State Department for Broadcasting and Telecommunications), the government has invested in expanding national broadband networks and constructing digital hubs to provide reliable connectivity and modern facilities for BPO operations. One notable example was the establishment of the Konza Technopolis project, which helped pave the way for further private investments and boosted the growth of the BPO sector. Moreover, the government offers subsidized internet access to BPO/ITES companies, helping reduce operational costs and enhancing Kenya’s foreign investment attractiveness.

Supporting Skills Training

In line with Kenya Vision 2030, the government is implementing various initiatives that leverage the growing young population to support the growth of the BPO and IT-enabled services (ITES) sectors. The developed skills specifically focus on creating a skilled workforce for the BPO industry. Here are some critical programs:

• Digital Literacy Programme (DLP): This program reaches primary school students and teachers, introducing them to digital skills through devices, training, and digital content. DLP aims to create a generation comfortable with technology, which will make it easier for them to seek BPO opportunities in the future.
• Presidential Digital Talent Programme: The government recognizes the skill gap among the working-age population. This collaborative effort between the government and the private sector aims to train professionals in ICT skills and leadership to address this skills gap and help create a pool of qualified candidates for the BPO industry.

Centers of Excellence: The government entered into partnerships with various universities to establish centers focused on developing specific IT skills relevant to the BPO industry.

Aligning Government Policy:

Aside from the major legislation discussed previously, several landmark policy moves express the government’s commitment to supporting the BPO industry in the previous decades:

• Special Economic Zones Act, 2025: This act provides incentives for BPO/ITES companies operating in Konza Technopolis and other designated areas to create a more favorable business environment.
• Konza Bill: This bill aims to further enhance Konza Technopolis’s regulatory framework to make it more attractive to BPO companies.
• Public Sector Communications Policy, 2015: This policy standardizes government communication structures and processes, promoting efficiency and transparency, which can indirectly benefit the BPO industry.

Ajira Digital Programme: This program focuses on promoting employment opportunities for youth in the digital sector. It includes training and mentorship, access to infrastructure, such as the establishment of Constituency Innovation Hubs (CIHs), and awareness campaigns.

Kenya’s BPO Boom: A Government-Assisted Success Story

Kenya’s BPO industry thrives with a healthy growth rate, thanks mainly to the government’s unwavering support. By addressing the gaps that existed in the decades after the establishment of Kenya’s BPO industry, the government has made strategic initiatives, enacted legislative reforms, invested in the IT infrastructure, supported and promoted skills training, and adopted a policy that has created a conducive environment for BPO companies to flourish. Backed by robust government support, Kenya’s BPO industry isn’t just another outsourcing option—it’s a forward-thinking solution for businesses worldwide, set to contribute significantly to global economic development.

Nous Business Solutions Limited: Your Partner in Growth

Nous Business Solutions Limited is one of the fastest-growing BPO companies in Kenya, offering comprehensive services tailored to the specific needs of international clients. Our expertise includes:

• Outbound Call Center Outsourcing
• High-Quality Data Capture and Validation
• Inbound Call Center Outsourcing
• Social Media Customer Service

Contact Nous Business Solutions Limited today to discuss how our tailored BPO services can meet your needs and help drive your business forward.

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