Kenyan govt. earmarks $12 million for BPO growth

In a significant move, the Government of Kenya has pledged a whopping sum of $12 million to bolster training and marketing activities as well as for office space in the BPO sector for a period of one year. In fact, most major outsourcing firms have expressed their eagerness to set up BPO centers at the under-construction Malili Technology Park in case the government offered them some incentives, such as office space without rentals and funds for training and marketing. Hence, the funds earmarked for the purpose, demonstrates the Kenyan government’s commitment to promote the BPO industry in the East African nation.

Quoting the permanent secretary in the Kenyan ministry of information and communication, Bitange Ndemo, a news website reports that the amount is a share of a preliminary understanding whereby the government will acquire office space at the Sameer BPO Park, situated around 15 km from the Nairobi Central Business District, and grant occupancy to the existing business process outsourcing firms as well as investors who desire to set up new centers in the country. The government move is seen as a preparation for the sprawling Malili Technology Park located about 60 km outside the city precincts.

In addition to pledging $12 million for BPO expansion in the country, the Kenyan government in association with the International Finance Corporation is building the grand Malili Technology Park spread over an area of 5,000 acres. Besides hosting the major outsourcing firms of the country at one location, the ambitious project will comprise hotels, universities and a number of services related to exports. The development of the Malili Technology Park is a result of partnership among ten ministries of the Kenyan government and involves enormous infrastructure promotion, including the establishment of an express railway system. The project is expected to be complete in two years’ time.

According to the CEO of Kenya ICT, Paul Kukubo, the Malili Technology Park will form the basis for promoting the services offered by Kenyan companies to the East African nations. While a number of firms have expressed their willingness to book space in the Malili Technology Park, the project is currently facing a hurdle owing to regulations. In fact, the country’s Special Economic Zone policy has been placed before the Cabinet, which is yet to approve it. However, Bitange Ndemo is not worried over this issue saying that the government will be able to complete the legal formulation within a year with a view to promote the country’s the BPO sector and enable it to contend with other destinations like Mauritius and Ghana.