Kenya: foreign investors to benefit from Bpo

Foreign and local investors in Kenya will benefit from the country’s Business processingbpo outsourcing (BPO) technology park being set up by the government.

According to the chief executive of the Kenya ICT Board Paul Kukubo, the government has allocated Ksh 900million ($13 million) for the construction of the BPO park. The construction of the 5000 seat park will be completed in the next 36 months and it is envisaged that Kenya will be one of the credible BPO destinations in Africa.

“We need to have the park in place within that time frame. Technology is dynamic and we cannot afford to wait,” says Kukubo adding that the funds set aside by the government will be used to finance the initial part of the project making Kenya an ICT hub.

Kukubo said social amenities such as by passes and electricity grids would be created within the park to attract both foreign and local investors in the area.

The park is expected to ensure the availability of internet service for the public as well as create about 10.000 jobs. The project will enlist the support of the private sector and borrow ideas from established BPO destinations such as India and Dubai for best practices.

The BPO technology park is a key project in Kenya’s Vision 2030.

Other benefits that would accrue from the BPO park include :

• The infrastructure improvements which will encourage growth in the wider economy
• The BPO park will increase the experience of the talent pool, particularly management experience
• Successful BPO parks lead to increased exposure for the wider business environment
• The increased economic activity beyond ICT will generate tax revenues (e.g., in South Africa, for every 100 rand of direct BPO activity, 60 Rand of indirect activity was created)
• The increased economic activity beyond ICT will create employment (e.g., in South Africa, each high end job created led to between 4 and 8* additional jobs)
• BPO park experience will support the development of wider technology parks
• Create a domestic culture, outsourcing processes, improving productivity


By Ken Chelimo

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