Digital outsourcing is often promoted as a gateway to jobs for Africa’s connected youth. Yet behind the promise of stable employment lies a more troubling reality. From Kenya to Madagascar and Nigeria, workers’ well-being remains fragile.

Sama, a digital outsourcing company with established operations in Nairobi, announced on Thursday it would lay off 1,108 employees after Meta said it was ending a major contract at its Kenyan site.

Most of the affected workers were assigned to data annotation and content processing tasks linked to that contract, the company said. The layoffs will take place over the course of the month, in line with Kenyan labor law.

Beyond the contract termination, the impact is significant. For years, Sama had come to represent a model promoted by artificial intelligence firms and their subcontractors: the creation of digital jobs in Africa, integrated into global value chains and offering opportunities to an educated urban workforce.

The current situation highlights the limits of that model. While such jobs exist, they often depend on decisions made by a small number of foreign clients, capable of disrupting hundreds of livelihoods at short notice. This vulnerability is particularly notable as Kenya has positioned itself as a key hub for digital outsourcing — a sector the International Labour Organization (ILO) says offers opportunities but still faces gaps in social protection and working conditions.

A precedent

The layoffs follow a series of tensions involving Sama, Meta and Kenyan workers. In January 2023, Sama ended its content moderation work for Meta to focus on data annotation, cutting about 200 jobs, or nearly 3% of its workforce at the time.

The company continued to provide data labeling services to Meta, which remained a key client. The termination of the current contract therefore marks a more significant break.

Sama has also been at the center of one of the most prominent labor disputes in Africa’s digital economy. Since 2022, former content moderators have taken legal action against Meta and its subcontractor in Kenya, alleging low pay, limited psychological support and prolonged exposure to disturbing content that led to post-traumatic stress, anxiety and depression.

In September 2024, a Kenyan court ruled that Meta could be sued in the country over the dismissal of moderators employed by its contractor, including in a case involving allegations of retaliation against unionization efforts.

Working conditions

This history shapes the current debate. Meta says it requires contractors to meet compensation and psychological support standards above market levels. Sama says it is supporting affected employees “with care and respect.”

However, the key issue remains unresolved: who bears the human cost of content moderation and AI training? Much of the performance of major technology companies depends on outsourced workers who sort, label and verify data far from corporate headquarters.

The contract termination also comes amid renewed scrutiny of the work carried out in Nairobi. A recent investigation by Swedish media reported that images captured by Meta’s smart glasses — including sensitive personal content — were reviewed and labeled by workers in Kenya, raising concerns about privacy and consent.

No direct link has been established between that reporting and the contract decision, but it has added to concerns about the fragility of the outsourcing model.

What model for Africa?

The episode underscores structural weaknesses in Kenya’s strategy to develop digital outsourcing as a source of jobs and investment. The ILO has noted that while the sector offers growth potential, it requires stronger labor standards, social protections and oversight.

The Sama case illustrates those risks. Without stronger regulation and safety nets, digital hubs can become highly exposed to commercial decisions taken abroad.

The implications extend beyond one company. The episode raises broader questions for Kenya and other African countries seeking a role in the global AI economy: whether to remain low-cost outsourcing hubs or to develop ecosystems with stronger labor protections, transparency and accountability.

Digital outsourcing has often been presented as a path for Africa to move up the technology value chain. But the loss of more than 1,100 jobs following a single client’s decision points instead to continued dependence on external actors.

The case also highlights a basic reality: artificial intelligence relies on human labor — often invisible — to function. In Nairobi, more than 1,100 workers and their families are now bearing the consequences of a contract decision taken thousands of miles away.

Muriel EDJO