East African firms turn to AI to cut workforce management costs

NAIROBI, Kenya, Nov 2 – Businesses across East Africa are increasingly adopting artificial intelligence (AI) tools to automate human resource functions as companies seek to improve workforce productivity, reduce administrative costs and manage rapid expansion. The technology is being deployed in recruitment, employee scheduling, performance monitoring, payroll processing and workforce analytics, reflecting a growing shift from manual human resource management to automated systems. Industry players speaking at the inaugural Future of Commerce Summit, hosted by workforce technology firm Factorial and Glovo Kenya, said AI-powered systems were helping businesses make faster staffing decisions while improving operational efficiency. “East Africa’s commerce sector is expanding at a pace that demands smarter, faster, and more connected ways of managing people,” said Fredrick Githendu, Partner Manager at Factorial. He said AI applications were increasingly supporting smart hiring, live employee coaching, automated document processing, scheduling and real-time workforce reporting. A presentation at the summit titled The Hidden ROI: How AI in People Operations Fuels Fast-Moving Commerce highlighted potential efficiency gains from the adoption of Factorial One, the company’s AI-powered workforce management platform. According to the company, businesses using the platform have recorded savings of up to 15 hours weekly on employee rosters, 75 percent faster CV screening and a 90 percent reduction in report preparation time. The platform integrates payroll, talent management, performance monitoring and workforce analytics, allowing businesses to consolidate human resource functions within a single system. Glovo Kenya said its own expansion had increased the need for more efficient employee management systems, particularly as its workforce grew alongside its operations. “Over the last four years, the Glovo business has grown four times, with our staff increasing from 33 to over 100, and we are increasingly looking for smarter, faster, and more connected ways of managing people,” said Caroline Mutuku, Glovo Kenya Country Managing Director. The growing adoption of digital human resource systems comes as African businesses face pressure to improve productivity while managing increasingly complex employment and compliance requirements. Deloitte’s 2025 Africa Human Capital Trends report indicates that more than 60 percent of medium-sized enterprises in major African cities have adopted at least one digital human resource tool, signaling growing acceptance of technology in workforce administration. The expansion is also reflected in the region’s payroll technology market. The African payroll software market, valued at USD 487.3 million in 2026, is projected to reach USD 1.66 billion by 2035, representing a compound annual growth rate of 14.6 percent. Rising cloud adoption, regulatory compliance requirements and the expansion of mobile-first business infrastructure are among the factors supporting demand for digital payroll and workforce management solutions. However, wider adoption also raises questions around implementation costs, data protection, employee privacy and the ability of smaller businesses to integrate AI into existing operations. For businesses with limited technology budgets, the cost of acquiring and maintaining digital systems could remain a barrier, even as automation promises savings in administrative time. Factorial, which has been expanding its presence in African enterprise markets, recently raised $150 million in a Series D funding round, placing its valuation at $2.5 billion.