Poaching headache: How Kenyan firms can win talent wars against Big Tech

Often cited as one of the key impediments to the takeoff and eventual flourishing of many a tech startup in the Kenyan ecosystem, the headache of talent poaching has re-emerged as multinationals seek to set up local operations.

In what has refreshed jitters among newbie firms in the tech space, multiple pointers have in recent months signaled an imminent raid on talent as Kenya continues to position itself ahead of continental peers in the new-age revolution.

The latest came in this April when the Competition Authority of Kenya ordered online food and groceries delivery apps, including Glovo and Uber Eats, to set up offices in the country to handle growing consumer complaints.

Earlier in January, American multinational computer technology firm Oracle Corporation had announced plans to establish a public cloud region in Nairobi which was poised to meet the growing demand for Oracle Cloud Infrastructure services across the continent.

Last August, popular short-form video app TikTok also spelt out a plan to set up an office in Kenya as part of efforts aimed at easing its coordination of Africa operations.

This was followed by a visit to the US by President William Ruto in September from where he announced that following deliberations with top Silicon Valley firms, tech giants including Google, Intel and Amazon had pledged to absorb up to 300,000 workers out of the Kenyan youth.

“I was in America and we agreed with Amazon, Intel and Google that they will provide digital jobs for Kenyan youth. They want us to give them 100,000, 200,000 and 300,000 workers,” remarked Dr Ruto following the trip.

Whether the trail of pronouncements and the attendant projections come into fruition or not, they have rekindled apprehensions among local establishments as they battle to sustain their workforce in the face of enticing external offers, with even behemoths such as Safaricom sounding the alarm.

“In our shift from a conventional telco to a digital services provider, we are facing heightened competition both for consumers and for digital talent from various non-traditional players,” wrote the telco in its latest annual report.

But is it all doom and bleak for the homegrown ventures?

While analysts admit that local firms cannot compete on remuneration rates with the Big tech, they recommend a raft of measures to safeguard against the latter-day talent poaching forays.

“What they need to do is re-evaluate what value they offer employees that Big tech will struggle with,” opines David Ogiga, director at startup incubation centre Sote Hub.

“One area that Kenyan companies can easily guarantee is job security. Most big tech firms will offer enormous compensation but for short-term engagements with no predictability on the length or terms of service since this is usually influenced by events happening at the parent company, usually headquartered outside Kenya,” he adds.

Savio Wambugu, who sits as the chairperson of the Association of Countrywide Innovation Hubs, advocates for equity and ownership as well as visionary culture incorporation as the masterstroke to retain talent.

“Firms should have a plan whereby the key techies have a sense of ownership in the company as this will always make them feel a sense of belonging since they will be working for the collective good of everyone,” he says.

“Often, startups sell their vision to the outside world but most owners never make the techies understand what their success would mean to them. In this case, these techies work for money and that’s why when big tech firms come with better offers they get enticed.”

Mr Ogiga also recommends the creation of a healthy working environment where goals and expectations are clear, while cultivating a culture of respect, healthy competition, innovation as well as one where creativity is rewarded.

“These among others will earn you your employees loyalty and they are likely not to be swayed by temporary sweet deals from Big techs,” he states.