The Kenya Private Sector Alliance has partnered with Factorial HR to accelerate the adoption of artificial intelligence (AI) in human resource management among Kenyan businesses.
The partnership seeks to help companies improve productivity, streamline workforce management and reduce operational costs through the digitisation of HR processes.
The initiative will be supported through Factorial’s $10 million AI Acceleration Fund, which will subsidise up to 50 per cent of the cost of implementing the company’s AI-powered human resource tools.
Speaking during a KEPSA members’ breakfast meeting, Mary Ngecha said businesses are increasingly under pressure to manage rising operational costs while maintaining competitiveness.
She noted that embracing technology is becoming essential for firms seeking to improve workforce productivity and efficiency.
“Companies need to adopt technology to enhance workforce management and improve productivity in an increasingly competitive business environment,” she said.
According to the World Bank, small and medium-sized enterprises account for more than 80 per cent of employment in Kenya and contribute nearly 40 per cent of the country’s Gross Domestic Product (GDP).
Factorial’s HR platform is designed for organisations employing between 20 and 2,000 workers and includes tools for recruitment, onboarding, performance management, payroll, expense tracking and compliance.
The company has also established a Nairobi office, which will serve as its regional hub for East Africa as it expands operations in the region.
Francesc Rul·lan said many organisations in Kenya continue to face challenges arising from fragmented processes that undermine efficiency and competitiveness.
The partnership comes amid growing interest among businesses in integrating AI technologies to automate operations, improve efficiency and enhance productivity across sectors.
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