Kenya’s BPO market is undergoing significant growth, with revenues expected to reach US $272.10 million in 2025 with an annual growth rate of 5.96%. This has resulted in a projected market volume of US $343.00 million by 2029. The Kenyan government also plans to create 1 million BPO/ITES jobs in the next five years through supportive policies and incentives.
However, the rise of automation could slow down this growth. New research by Caribou and Genesis Analytics, in partnership with the Mastercard Foundation identifies Customer Experience roles – 44% of current employment in the African BPO sector – as particularly vulnerable, with half of the tasks at risk of automation.
The report further identifies 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, creating new pathways for workers to move into higher-skilled, higher-paying roles. With just 10% of tasks fully resilient to automation, strategic investment in widespread AI upskilling and training will be key to unlocking Africa’s $35 billion BPO potential by 2028.
Rodwell Mangisi, Director of Digital Economy Pan African Programs at the Mastercard Foundation said:
“Africa’s tech outsourcing industry is expanding rapidly, adding new jobs and opportunities each year. As AI transforms global business processes, Africa can lead by ensuring its workforce is AI-ready. By investing in targeted upskilling programs, especially for women and young professionals, we can ensure this 6% annual growth translates into sustainable, high-value employment that benefits all demographics.”
AI is already deeply integrated into Africa’s BPO and ITES sectors, driving efficiency and innovation. Workers are using tools like ChatGPT, Microsoft Copilot, and in-house chatbots to enhance productivity, creativity, and accuracy. These AI-powered technologies assist with coding, debugging, content generation, and customer service, enabling employees to focus on strategic problem-solving, decision-making, and higher-value tasks. As a result, they see opportunities for career advancement and transitioning into higher-level roles
Despite these opportunities, AI’s rapid rise could impact certain roles in the BPO sector. Entry-level jobs – comprising 68% of the workforce – are particularly affected, with more than half of tasks being automatable. To futureproof the sector, AI-driven upskilling programs are needed to enable workers to shift into higher-skilled, better-paying roles in cybersecurity, AI management, and data services.
Charlene Migwe, Program Director at Caribou said:
“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 presents significant opportunities, it also poses challenges, particularly for women and youth who predominantly occupy entry-level roles. The report highlights tasks performed by women are on average 10% more susceptible to automation than those by men in the sector. This disparity risks exacerbating gender-based inequalities in the sector’s workforce if not proactively addressed.
Customer Experience roles, which account for 44% of employment in the BPO sector, are among the most affected, with half of tasks in these roles being automatable. Finance and Accounting positions in the BPO sector face similar challenges, with nearly two-thirds of junior-level tasks at risk.
Without intervention, these shifts could disproportionately impact the livelihoods of young workers and women in the sector. To mitigate these risks, the report stresses the urgency of equitable AI upskilling and reskilling efforts to ensure all demographics can transition into future-proof roles.
