Kenyan outsourcing firms form alliance to scale business services and jobs

Four leading Kenyan outsourcing firms have launched a new coalition aimed at accelerating growth in the country’s business services sector and creating 100,000 jobs by 2026, officials said on Thursday.

The Outsourcing Alliance of Kenya brings together major providers of business process outsourcing (BPO) and information technology services, including CCI Kenya, CloudFactory Kenya, Teleperformance Kenya, and Sama Kenya. The initiative marks a formal effort to consolidate the sector, which the government increasingly sees as a key driver of economic growth and youth employment.

The alliance was launched in the presence of government representatives, including officials from the Ministry of Information, Communications and the Digital Economy. According to the ministry, the coalition plans to expand to more than 20 member companies by the second quarter of 2026. Its overarching goal is to strengthen the sector’s capacity, boost competitiveness, and create a broad network of employment opportunities across the value chain.

Speaking at the launch, John Tanui, principal secretary for information and communications technology and the digital economy, said the initiative aligns with the government’s vision of inclusive digital growth. “Expansion of global business services can unlock opportunities for young Kenyans,” he said. Tanui highlighted the state’s role in crafting targeted policies, regulatory frameworks, and incentives that help local firms access international markets and scale operations.

Kenya has positioned itself as a regional hub for business services, with companies providing services ranging from customer support, data processing, and software development to AI-enabled services for clients across Africa, Europe, and North America. The sector has been credited with improving foreign exchange earnings and providing opportunities for skilled youth, but growth has been uneven, with many smaller firms struggling to meet global standards and market access challenges.

The government has backed the sector through training programmes such as Ajira Digital and Jitume, which aim to equip tens of thousands of young Kenyans with skills demanded by the outsourcing industry. These initiatives cover digital literacy, coding, customer service, and project management, ensuring that graduates are ready to compete in global value chains. By connecting education and industry needs, the programmes also seek to reduce the gap between formal schooling and practical work experience.

Internet penetration in Kenya reached 48 percent in 2025, a figure that, while modest, has been rising steadily and is seen as a critical enabler for digital services. Improved connectivity, coupled with mobile technology adoption, has allowed Kenyan BPO companies to expand their operations and attract clients looking for cost-efficient, high-quality outsourced services.

Despite Kenya’s overall unemployment rate of 5.2 percent in 2025, youth unemployment remains a persistent challenge. Analysts have noted that digital and outsourcing sectors represent one of the few areas capable of providing large-scale, formal employment opportunities to young people, who make up a significant portion of the country’s population.

The Outsourcing Alliance of Kenya aims not only to grow business services but also to strengthen collaboration among firms, share best practices, and provide a unified voice in policy discussions. By consolidating resources, standardising service quality, and pursuing joint marketing strategies, members hope to attract more international clients and scale operations across Africa.

At the launch, alliance members stressed that success would require a combination of capital investment, training, and operational discipline. The coalition’s approach reflects a growing recognition that sustainable growth in business services depends on both human capital and infrastructure support, as well as coherent government policies.

As the Kenyan economy continues to embrace digital transformation, the Outsourcing Alliance represents a model for how private sector-led initiatives can complement state efforts to expand jobs, increase exports, and build a globally competitive services industry. For Kenya’s young workforce, the initiative could signal more opportunities to acquire skills, gain work experience, and contribute to the country’s economic development.

With its focus on scaling the sector and creating 100,000 jobs within two years, the alliance underscores the growing importance of business services in Kenya’s economic strategy and the central role that youth empowerment will play in sustaining long-term growth.

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