Launch remarks · 10 May 2024
I am delighted to join you as we witness our country taking another stride into a digital future of prosperity. It is evident that digital technologies have revolutionized service delivery worldwide, streamlining processes, transcending borders, significantly reducing transaction costs, and reshaping business models.
The scale of this transformation has been immense, impacting every economy. In 2020, digitally delivered services comprised 64 per cent of service exports, a notable increase from 52 per cent in 2019, as reported by the United Nations Conference on Trade and Development. This shift enables companies to cut costs, tap into global talent pools, and outsource functions like customer service, finance, and administration.
The explosive growth of business process outsourcing (BPO) underscores the irreversible transition to a digital economy. Here, goods and services are produced and consumed using digital technology, facilitating real-time interactions across the globe. The contribution of BPO to business efficiency and productivity has been tremendous and continues to rise.
The global software and BPO services market is projected to expand from $2.4 trillion in 2022 to $3.9 trillion in 2026, with an annual growth rate of 12 per cent. This growth presents vast opportunities for countries and businesses of all sizes. IT and BPO services play a pivotal role in talent retention and combating brain drain, especially in developing nations. Kenya, with its burgeoning digital services sector, is poised to thrive in this environment.
Kenya's untapped BPO market offers significant opportunities. Our strengths include a large, skilled youth workforce, government policies prioritizing the Digital Economy as a strategic pillar of the bottom-up economic transformation agenda, an education sector emphasizing digital skills, a strategic geographical location aligning with global time zones, and proficiency in English, a language widely used in major economies.
The government's deep commitment to the BPO sector is evident in its inclusion in key policy documents and our development agenda. Our goal is to enable at least 1 million digital workers over the next five years, supported by investments in infrastructure such as national broadband and digital hubs. Additionally, we are focusing on green energy, regulatory reforms, and data governance to enhance the investment climate.
To further promote growth, we are updating legal frameworks, establishing BPO standards, and enhancing incentives to reflect technological advances. These efforts position Kenya as an ideal destination for global business services, and I encourage more investors to explore opportunities here, especially in our Special Economic Zones.
The government of Kenya is committed to propelling the Business Process Outsourcing (BPO) industry, aligning with our digital-first approach to create over one million digital jobs by 2026. This initiative is a core aspect of the 4th Medium Term Plan, reflecting our dedication to enhancing Kenya’s competitive stance regionally and globally.
We have laid a robust foundation for BPO growth through significant infrastructural developments, including expansive fibre network rollouts, Wi-Fi hotspots, and the establishment of 1,450 digital hubs nationwide. These hubs not only facilitate connectivity but also serve as centres for digital training, equipping our youth with the skills necessary for the digital economy.
Further, our focus on green energy, which accounts for 93% of our power supply, underscores our commitment to sustainable development. This ensures reliable power for BPO operations while minimizing environmental impact.
Regulatory reforms are also underway to foster a more investment-friendly environment, streamlining processes to facilitate growth in IT-enabled services and remote work. Our commitment extends to data governance, with robust policies and a dedicated Data Protection Commissioner to ensure data security and privacy.
To accelerate the growth of the Business Process Outsourcing and IT-enabled services sector, we are implementing strategic measures to enhance our competitive edge and align with global standards. These initiatives include:
Legal Reforms: We are strengthening existing laws to create a conducive legal environment for the ICT-BPO industry. Our goal is to develop sector-specific legislation that aligns with international standards in the short and medium-to-long term.
Standardization: By developing and enforcing BPO standards that meet international best practices, we ensure that all BPO firms operating in Kenya adhere to the highest quality norms.
Incentives Update: We are updating both fiscal and non-fiscal incentives to keep pace with technological advancements, making Kenya an even more attractive destination for BPO investments.
Outreach and Education: Continuous communication and educational initiatives are underway to highlight the opportunities available in the BPO/ITES sector, ensuring all potential stakeholders are informed and engaged.
Green Energy Partnerships: In collaboration with the private sector, we are committed to achieving 100% green energy usage in the sector to reduce power demand and environmental impact.
Skill Development: Together with our private sector partners, we are dedicated to ongoing upskilling and reskilling of Kenyan youth, ensuring they are prepared for the jobs of tomorrow.
These efforts demonstrate our commitment to fostering a thriving, sustainable, and globally competitive BPO sector in Kenya. We are determined to claim our fair share of the BPO sector pie, for the benefit of our young men and women who are eager to contribute to growing our economy.
We invite investors to collaborate with our digital hubs, leveraging these advancements for successful BPO operations and future expansions. Join us in shaping a digitally empowered Kenya.
I commend CCI for establishing this ultramodern, thoughtfully designed, and deliberately efficient contact centre, which will serve global clients and benefit both Kenya and your company. The CCI Kenya contact centre is now officially open. Thank you. God bless you. God bless Kenya.