Kenya’s parliament has introduced the Business Law (Amendment) Bill 2024 to tighten regulations for business process outsourcing (BPO) and IT-enabled service (ITES) firms and hold them responsible for employee welfare. This move follows a landmark court ruling in September 2024 that allowed BPO employees to sue locally, sparked by former Sama employees who alleged exploitative practices, including underpayment of $2 per hour, while moderating harmful content for clients like Meta. The bill mandates employers to provide the tools necessary for employees to discharge their duties and bars them from evading liability by claiming exemption from liability due to non-beneficiary status. However, critics argue the proposed law could deter outsourcing giants due to increased operational risks and compliance costs, jeopardizing Kenya’s growing outsourcing industry. Meanwhile, Sama, at the heart of this dispute, has exited content moderation and shifted to AI labeling services. Before its exit, the company was sued by 180 former employees who claimed unfair dismissal.
SOURCE: TECH CABAL
