Kenya BPO Policy Expansion 2026: Tier-2 Cities, AI Jobs & UNGA 81 Push

Technology
Veronica Madanga
September 20, 2026
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Kenya is preparing to take its digital jobs strategy beyond Nairobi and Mombasa, with the government targeting cities such as Nakuru, Eldoret, Nyeri and Kericho as emerging centres for Business Process Outsourcing and Global Business Services.

The expansion comes as policymakers seek to move Kenya beyond traditional call-centre work into higher-value services including artificial intelligence operations, software development, cybersecurity, data analytics and financial services.

Principal Secretary for ICT and the Digital Economy Eng. John Kipchumba Tanui has linked the strategy to Kenya’s wider digital transformation agenda, arguing that the country has an opportunity to build a larger global services industry around its skilled workforce and digital infrastructure. The Ministry of ICT and Digital Economy’s digital outsourcing initiative is already seeking to connect trained young people with international outsourcing opportunities.

Kenya’s domestic BPO ambitions are also unfolding alongside a growing international push on artificial intelligence. President William Ruto and Finnish President Alexander Stubb are expected to co-host a high-level “AI Middle Powers: Shared Sovereignty” roundtable during the 81st United Nations General Assembly, linking Kenya’s digital ambitions to discussions about AI capacity, technology sovereignty and global governance.

Kenya Looks Beyond Nairobi For Digital Jobs

Nairobi has traditionally been the centre of Kenya’s technology and outsourcing industry, supported by its telecommunications infrastructure, international connectivity, skilled workforce and concentration of multinational companies.

The government now wants that model replicated in other parts of the country.

Tanui has said Kenya’s digital economy currently supports more than 350,000 jobs, including more than 40,000 in BPO and GBS. He has identified Nakuru, Nyeri, Kericho and Eldoret as towns where the government wants to expand opportunities beyond Nairobi and Mombasa.

The proposed decentralisation could change the geography of Kenya’s digital economy.

Instead of requiring young people in secondary cities to relocate to Nairobi to access technology-enabled employment, companies could establish delivery centres closer to universities, technical institutions and existing pools of digitally trained workers.

That model could also allow companies to tap into different labour markets while potentially reducing some operating costs associated with Nairobi.

BPO Policy Targets A Larger Employment Pipeline

Kenya’s BPO expansion is backed by a policy framework intended to create more digital employment opportunities while providing greater structure for the outsourcing industry.

The government announced in June 2026 that Cabinet had approved a new Business Process Outsourcing policy designed to create digital employment opportunities for hundreds of thousands of young Kenyans and provide a framework for protecting workers in the digital economy. The Government Advertising Agency’s report on the BPO policy said the policy is also intended to strengthen Kenya’s position in the global outsourcing market.

The policy sits alongside Kenya’s wider digital transformation programmes.

The Ministry of ICT’s Digital Outsourcing Jobs for Kenya’s Youth programme was launched in May 2026 to equip young people with market-driven digital skills and connect them with international outsourcing opportunities. The ministry said the programme builds on initiatives including Ajira Digital and Jitume digital hubs.

The scale of the employment ambition is significant because Kenya produces a large number of young graduates and school leavers each year.

The government’s BPO strategy therefore seeks to turn digital services into an additional employment channel for a population that increasingly competes for opportunities in both domestic and international labour markets.

SEZ Model Could Support Tier-2 Expansion

Special Economic Zones could become an important component of the decentralisation strategy.

Kenya’s Special Economic Zones Authority provides a framework for designated areas to operate under specialised investment and regulatory arrangements. ICT parks, business-service parks and science and technology parks can provide infrastructure around which technology-intensive businesses can develop.

The model already has relevance to Kenya’s BPO industry.

Tanui recently highlighted Teleperformance’s operations at the TRIFIC SEZ Two Rivers in Nairobi, where the company operates alongside its wider Kenyan presence.

Teleperformance’s operations demonstrate the type of infrastructure that can support international outsourcing businesses, including large-scale office capacity, connectivity and access to skilled workers.

Replicating elements of that model in cities such as Nakuru and Eldoret would require more than simply designating buildings as technology hubs.

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Reliable electricity, high-speed internet, secure data infrastructure, transport connections, skilled workers and appropriate data-protection standards would all be necessary for the locations to compete for international contracts.

The Special Economic Zones Authority framework provides an existing policy structure that could support such investment, particularly where ICT and business services are integrated into designated zones.

From Call Centres To AI Operations

The next phase of Kenya’s BPO strategy is increasingly focused on the type of work being performed.

Traditional outsourcing has relied heavily on customer support, contact centres, administration and back-office functions.

Kenya is now seeking to move further into AI operations, software development, cybersecurity, data analytics and financial services.

Tanui said the government’s strategic task is to move the sector up the value chain and position Kenya as a destination for high-value global services. Current government messaging places BPO and GBS within a broader digital economy that already supports more than 350,000 jobs.

The shift matters because higher-value technology services generally require more specialised skills.

A software developer, cybersecurity analyst or data specialist performs a different role from a traditional customer-service representative. AI operations can also require workers who understand data preparation, quality assurance, model support and technology-enabled business processes.

Kenya’s opportunity therefore depends partly on whether its skills pipeline can keep pace with the changing requirements of international companies.

Skills Will Determine The Next Phase

The government has already connected BPO expansion with digital-skills development.

The Digital Outsourcing Jobs for Kenya’s Youth initiative is designed to equip young people with market-driven skills and connect them to global outsourcing opportunities. The ministry has also emphasised mentorship, internships and job-placement partnerships involving private-sector companies.

That approach addresses one of the biggest challenges facing Kenya’s digital employment ambitions: training people for jobs that actually exist.

Employers increasingly need workers with technical, analytical and communication skills rather than qualifications alone.

The transition from basic BPO work to AI operations and software services could therefore create demand for continuous training.

Universities, TVET institutions, private technology academies and digital-skills programmes could become important parts of the ecosystem around the proposed tier-2 hubs.

Eldoret, Nakuru And Nyeri Enter The Digital Economy Conversation

The proposed expansion into Eldoret, Nakuru, Nyeri and Kericho gives Kenya’s BPO strategy a strong geographical dimension.

Nakuru is already a major commercial and educational centre, while Eldoret serves as an important regional hub in western Kenya. Nyeri has a concentration of higher-education institutions, while Kericho provides another potential labour market outside Nairobi.

The government’s stated objective is to use these locations to create more sustainable digital jobs, increase service exports and broaden participation in the digital economy.

The commercial test, however, will be whether international companies see the locations as viable.

BPO firms typically consider talent availability, infrastructure, operating costs, connectivity, security, regulatory conditions and the ability to scale operations.

A tier-2 city capable of meeting those requirements could attract international service operations without needing to reproduce Nairobi’s entire technology ecosystem.

Data Governance Becomes More Important

Moving into higher-value technology services also increases the importance of data governance.

Kenya is developing a National Data Governance Policy aimed at creating clearer rules around data management, sharing, security and sovereignty.

The ICT Ministry says the proposed framework addresses challenges including fragmented systems, inconsistent data standards and limited capacity in data management and analytics. It also includes emerging risks linked to artificial intelligence, cloud computing and automated decision-making.

That policy direction has direct relevance to BPO.

International companies handling customer information, financial data or business processes need confidence that data is protected and that Kenya has credible institutions and rules governing its use.

Strong data governance could therefore become part of Kenya’s value proposition as it seeks higher-value outsourcing contracts.

Kenya’s Global AI Conversation Gains Momentum

The domestic BPO strategy is unfolding alongside Kenya’s growing involvement in international AI discussions.

Kenya and Finland have been strengthening cooperation in artificial intelligence and emerging technologies ahead of UNGA 81.

Kenya’s Special Envoy on Technology, Ambassador Philip Thigo, has held discussions with Finnish officials covering AI and emerging technologies, including connectivity, Earth observation and AI applications.

The talks are connected to the planned “AI Middle Powers: Shared Sovereignty” roundtable involving President Ruto and Finnish President Alexander Stubb.

According to the Kenya Broadcasting Corporation report on the Kenya-Finland AI cooperation, the discussion is intended to explore how middle powers can strengthen their capabilities and agency across the AI value chain.

The timing is significant because the 81st General Assembly has placed digital governance and responsible AI among its areas of focus.

UNGA 81 And The Question Of AI Sovereignty

The 81st UN General Assembly opened under the theme “Restoring Trust, Managing Transformation: A United Nations That Delivers for All.”

The international discussion around AI increasingly extends beyond the development of technology itself.

The UN General Assembly President’s speech on multilateral AI governance highlighted concerns about the concentration of advanced AI capabilities among a relatively small number of countries and companies. The speech also called for broader participation in shaping international AI governance.

That conversation has particular relevance for Kenya.

The country is simultaneously trying to attract AI-enabled business services while developing policies around data, digital skills and emerging technologies.

Questions around access to computing infrastructure, data, skilled workers and technology partnerships are therefore not separate from Kenya’s economic strategy.

They are becoming part of it.

BPO Could Become An Entry Point Into AI Services

Kenya does not need to immediately compete with the world’s largest AI developers to participate in the AI economy.

Existing BPO capabilities could provide an entry point into AI-enabled business services.

Data preparation, AI model support, technical customer operations, data analysis, cybersecurity support and software development can all form part of a wider technology-services ecosystem.

The ICT Ministry’s partnership on sovereign AI adoption illustrates another dimension of Kenya’s strategy: working with international partners to develop AI applications while paying attention to local contexts, data ownership and African needs.

The transition will nevertheless require higher technical skills and stronger quality standards.

Training programmes will need to move beyond basic digital literacy if Kenya wants workers to participate in higher-value technology services.

What The Expansion Could Mean For Kenya

Kenya’s BPO strategy is increasingly being presented as more than a call-centre employment programme.

The government is attempting to combine digital skills, infrastructure, investment incentives, SEZs, data governance and international technology partnerships into a broader global-services ecosystem.

The proposed expansion into Nakuru, Eldoret, Nyeri and Kericho would give the strategy a geographical dimension.

The focus on AI operations, cybersecurity, software development and analytics gives it a skills dimension.

Kenya’s participation in the AI Middle Powers discussions at UNGA 81 adds an international policy dimension.

Implementation will determine how far those ambitions translate into jobs.

Tier-2 cities will need reliable infrastructure and enough skilled workers to attract international firms. Training programmes will need to produce capabilities that match market demand. SEZ incentives will need to translate into actual investment and employment.

Kenya’s digital economy currently supports more than 350,000 jobs, according to Tanui, including more than 40,000 in BPO and GBS.

The government’s next challenge is to expand that employment base while moving workers into higher-value global services and spreading opportunities beyond Nairobi and Mombasa.

The combination of tier-2 BPO hubs, AI-enabled services, stronger data governance and international AI diplomacy could place Kenya in a broader global digital-services conversation.

The outcome will ultimately depend on whether infrastructure, skills, investment and policy implementation develop at the same pace as the government’s ambitions.