KEPSA, Factorial partner to push AI-driven HR digitisation in Kenya

The partnership, announced in Nairobi on Thursday during a KEPSA members’ breakfast meeting, seeks to support companies in streamlining human resource management, improving workforce productivity and reducing operational inefficiencies through digital tools.

The initiative will be partly supported by Factorial’s AI Acceleration Fund, a USD 10 million programme that will subsidise up to half of the implementation costs for businesses adopting the company’s AI-powered HR solutions.

The collaboration comes at a time when many Kenyan firms, particularly small and medium-sized enterprises (SMEs), are facing mounting pressure from rising operating costs, changing workforce dynamics and increasing competition.

Speaking during the event, MD of Lineplast Group and KEPSA Director, Mary Ngecha said businesses are increasingly being forced to rethink how they manage talent and productivity.

“Our private sector is currently under pressure to manage short-term cost pressures while executing long-term growth strategies,” she said, adding that firms must move away from fragmented systems and manual processes in order to remain competitive.

According to World Bank data cited during the event, SMEs account for more than 80 per cent of employment in Kenya and contribute nearly 40 per cent of the country’s gross domestic product. Most of these businesses operate with fewer than 2,000 employees, a segment that Factorial says it is targeting with its software platform.

The company’s platform combines HR and business management functions, including recruitment, onboarding, leave management, employee performance tracking, training, payroll integration, budgeting and expense management. The software also integrates with Microsoft and Google workplace products.

Factorial said it has established a local office in Nairobi to support implementation and customer service, with Kenya expected to serve as its regional base for expansion into other East African markets.

Francesc Rul·lan said many organisations in Kenya continue to struggle with inefficiencies caused by disconnected systems and outdated administrative processes.

He said wider adoption of digital HR systems could help businesses improve decision-making, reduce administrative workloads and strengthen competitiveness.

“Many organizations in Kenya continue to struggle in terms of productivity, efficiency and competitiveness due to fragmented processes. In order to accelerate the digital transformation and unlock productivity gains, adoption of modern technology in HR is essential.” Added Francesc Rul·lan, Director of Expansion Strategy & Partnerships at Factorial.