Illustration for: Chinese AI firms build unregulated workforce via WhatsApp, mobile payments
Business & Startups

Chinese AI firms build unregulated workforce via WhatsApp, mobile payments

2 min read

Kenyan tech hubs have become a testing ground for a new kind of gig economy, one that sidesteps traditional contracts and operates entirely on smartphones. Chinese artificial‑intelligence startups have tapped into the country’s abundant pool of young, English‑speaking talent, recruiting them through WhatsApp chats rather than through established BPO firms. Payments flow via mobile money platforms that many users already trust for everyday transactions, allowing companies to scale quickly without setting up local offices or formal payroll systems.

The model promises rapid turnaround for data‑labeling, content moderation and other AI‑training tasks, yet it leaves participants without the protections that standard employment would normally guarantee. As the Kenyan authorities draft rules to address this emerging sector, the gap between informal digital labor and existing labor statutes is widening, raising questions about accountability and worker rights.

While the Kenyan government is working on regulations, current labor laws provide no safety net for these digital workers. Unlike US corporations that typically rely...

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While the Kenyan government is working on regulations, current labor laws provide no safety net for these digital workers. Unlike US corporations that typically rely on formal outsourcing partners, Chinese players operate through opaque networks. Work is organized in WhatsApp groups, payments are sent via the mobile service M-Pesa, and recruitment happens through Google Forms.

According to the workers interviewed, formal contracts and benefits are non-existent. Employees often don't even know the name of the company they work for, dealing only with middlemen. WhatsApp groups serve as high-pressure digital factory floors The report describes immense pressure within these informal structures.

Related Topics: #AI #WhatsApp #M-Pesa #gig economy #data labeling #content moderation #Chinese AI #Kenyan tech

Are these practices sustainable? The Kenyan labor market now hosts a hidden tier of AI labelers recruited through WhatsApp, paid via mobile transfers, and working up to twelve‑hour shifts for as little as 700 Kenyan shillings. No formal contracts bind them, and the pressure to meet daily quotas appears intense.

Unlike U.S. tech firms that usually channel work through established outsourcing partners, the Chinese companies operate through opaque networks that leave workers without a safety net. The government is drafting regulations, yet existing labor law offers no clear protection for digital gig workers.

It's unclear whether forthcoming rules will address the lack of contracts or the wage levels. Observers note the contrast between the informal recruitment model and the scale of data labeling required for AI development. If enforcement lags, the situation could persist, raising questions about accountability and worker welfare.

For now, the facts point to a workforce built on convenience rather than formal labor standards.

Further Reading

Common Questions Answered

How are Chinese AI firms recruiting Kenyan workers for AI labeling tasks?

Chinese AI startups recruit Kenyan talent primarily through WhatsApp group chats and Google Forms, bypassing traditional BPO firms. This method leverages the widespread use of smartphones and the country's pool of young, English‑speaking workers.

What payment method is used to compensate Kenyan gig workers in this new AI workforce?

Payments are sent via Kenya's mobile money platform M-Pesa, a service many users already trust for everyday transactions. This allows companies to scale quickly without needing traditional banking infrastructure.

Do the Kenyan AI labelers receive formal contracts or benefits from the Chinese companies?

According to interviewed workers, formal contracts and benefits are non‑existent; the labor arrangement provides no safety net. Workers operate under informal agreements, often facing intense daily quotas without legal protections.

What are the typical working conditions and wages for Kenyan AI labelers employed by Chinese firms?

Labelers often work up to twelve‑hour shifts for as little as 700 Kenyan shillings per day, reflecting low pay and demanding schedules. The lack of formal contracts means there is little recourse for workers facing excessive workloads.

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