Kenya's parliament has proposed a Business Law (Amendment) Bill 2024 to regulate business process outsourcing (BPO) and IT-enabled service (ITES) companies, amid growing scrutiny of worker conditions. This move follows a September 2024 court ruling allowing BPO firms to be sued locally, prompted by former Sama employees who alleged they were moderating harmful content for clients like Meta under exploitative conditions and with inadequate safeguards.

The proposed bill aims to curb exploitation and align Kenya's labor standards with global norms. It requires employers to provide all necessary tools for employee duties, regardless of ownership, and bars them from evading accountability by claiming they are not direct service beneficiaries. However, the bill raises concerns among commercial lawyers, who argue that the proposed law could deter outsourcing giants wary of increased operational risks and compliance costs.

The bill's rigid liability provisions may lead to unintended consequences, as BPO firms might be hesitant to operate in Kenya due to the increased risk of lawsuits. This could stifle Kenya's rising prominence in the global outsourcing industry, which has employed over 3,000 Kenyans through companies like Sama and Majorel. Balancing worker rights with business competitiveness is critical, and the bill's implementation must be carefully considered to avoid adverse effects on the industry.

The proposal comes on the heels of a lawsuit against Sama, which previously provided content moderation services to Meta before exiting the business amid legal disputes with over 180 former employees. These employees sued Sama for unfair dismissal and alleged that the company failed to protect them from the psychological toll of moderating harmful online content. Sama has since shifted its focus to AI labeling services for technology giants like Microsoft, Google, and Walmart.

Meanwhile, Meta is facing another lawsuit, which claims that the company's algorithm fueled ethnic violence in Ethiopia. Petitioners are seeking to ban harmful content recommendations and establish a $1.6 billion victim fund. As the tech industry continues to grapple with the consequences of its actions, Kenya's proposed bill serves as a timely reminder of the need for stricter regulations and greater accountability in the BPO and ITES sectors.

As the bill moves forward, it will be crucial to monitor its implications on Kenya's outsourcing industry and the global tech landscape. With the right implementation, the bill could set a precedent for improved worker rights and safer working conditions in the sector. However, if not carefully considered, it risks stifling innovation and growth in a critical industry.