The Kenya Private Sector Alliance (KEPSA) and Factorial Kenya have formed a strategic partnership aimed at helping Kenyan businesses improve workforce productivity through digital HR solutions and artificial intelligence (AI).
The collaboration brings together KEPSA’s extensive private sector network and Factorial’s all-in-one HR and business management platform to support organisations seeking to modernise workforce operations, streamline processes, and improve business performance. The initiative comes at a time when businesses across Kenya are under increasing pressure to do more with fewer resources while maintaining competitiveness in a rapidly evolving economic environment.
At the heart of the partnership is a shared commitment to helping businesses move away from manual and fragmented HR processes toward more integrated, data-driven approaches to people management. According to KEPSA, workforce productivity has become a critical priority for the private sector as organisations balance short-term cost pressures with long-term growth ambitions. Manufacturing and services continue to play a significant role in Kenya’s economy, making efficient workforce management a key driver of business success.
The partnership is expected to be particularly impactful for small and medium-sized enterprises (SMEs), which account for more than 80 percent of employment in Kenya and contribute nearly 40 percent of the country’s GDP. Despite their importance, many SMEs still rely on manual administrative processes that limit efficiency, visibility, and decision-making.
As part of the collaboration, Factorial Kenya is introducing support through its $10 million AI Acceleration Fund, designed to help organisations adopt AI-powered HR solutions by subsidising up to 50 percent of implementation costs for participating businesses. The fund aims to lower the barriers to digital transformation and encourage broader adoption of AI technologies across Kenya’s private sector.
The partnership extends beyond technology deployment. During KEPSA’s inaugural Members’ Breakfast, held in collaboration with Factorial Kenya, business leaders and policymakers gathered to explore the role of AI in reshaping workplace operations and driving efficiency. Discussions focused on how organisations can move beyond administrative-heavy processes and embrace technology that enables smarter decision-making, improved workflows, and sustainable growth.
Participants also highlighted the growing importance of collaboration between business associations and technology providers in accelerating digital transformation. As AI adoption continues to gain momentum globally, Kenyan businesses are increasingly recognising the need to invest in tools that strengthen productivity, improve employee experiences, and support long-term competitiveness.
The KEPSA-Factorial partnership represents a significant step toward building more efficient, technology-enabled workplaces across Kenya.
Frequently Asked Questions
Get answers to the most common questions about Factorial in Kenya
Yes, businesses in Kenya can use Factorial to digitise and automate HR processes. The platform supports teams looking to improve employee management, reduce manual administration, and create more efficient HR workflows.
Factorial HR can help automate onboarding, employee records management, leave and attendance tracking, recruitment workflows, performance reviews, employee feedback, document management, and HR analytics.
Factorial’s Business Management Suite typically includes employee management, time tracking, recruitment, onboarding, performance management, document management, expense management, scheduling, reporting, IT management, Finance management and workflow automation tools.
Getting started typically involves identifying your HR priorities, and booking a demo to speak to one of our experts.
