Kenya’s gig economy is rapidly evolving, driven by digital labour platforms that offer new employment opportunities across diverse sectors such as domestic work, health care, beauty services, and online freelancing.
This transformation is particularly significant for youth and women, who find gig work a flexible alternative to traditional employment, enabling participation in the global digital economy through platforms like Upwork, Fiverr, and Toptal.
Despite its promise, gig work in Kenya faces challenges. Workers often endure unstable incomes, high operational costs as they must provide their equipment, and job insecurity due to arbitrary account suspensions.
Social protections such as healthcare and pensions are largely inaccessible, and the competitive nature of the platforms suppresses wages and limits communication with clients.
Moreover, unfair rating systems exacerbate job insecurity, while low unionization leaves workers without formal representation, relying instead on informal networks like social media groups for support.
The regulatory environment remains inadequate, with no specific laws recognizing gig workers as employees, leaving them vulnerable to exploitation. Although progress has been made, such as the 2022 National Transport and Safety Authority regulations for ride-hailing services, the broader gig economy remains largely unregulated. This regulatory gap hinders the sustainable growth of Kenya’s digital labour market and the protection of workers’ rights.
Addressing these issues requires multi-stakeholder collaboration. The Policy Consultation Roundtable on Regulating Kenya’s Gig Economy, convened by GIZ and KICTANet, featured a keynote address on “Policy Directions for a Sustainable Gig Economy” delivered by a leading expert on the future of work. Mr. Solomon Kuloba, Deputy Commissioner of Labour, Ministry of Labour and Social Protection, stated:
“In this new world of work, we are witnessing the rise of on-demand and first-of-all work arrangements powered by digital platforms… the gig economy has given rise to employment opportunities, especially across various sectors.”
Mr. Kuloba acknowledged the emerging challenges around terms and conditions, such as long working hours and inadequate occupational safety, requiring policy interventions.
He also noted: “Our labour laws are close to 20 years old… This may lead to the margin of competent issues which may not diversify levels.”
Mr Emmanuel Kata Kimeu, Secretary, ICT, Ministry of ICT and the Digital Economy, highlighted the gig economy’s growing contribution to Kenya’s ICT sector GDP, rising from 1.4% in 2017 to 2.4% in 2021. He pointed out the policy challenges, noting: “Today, most gig workers operate without adequate social protection, stable income guarantee or clear legal status.”
Mr. Kimeu emphasized the need for a distinctly Kenyan approach that strengthens the connection between labour protection and a conducive business environment:
“We must recognize gig workers as legitimate employees whose rights deserve legal protection.”
Ms. Katharina Mengede, Head of Digital Economy at GIZ Kenya, emphasised, “There are as of 2022, 1.9 million Kenyans working in digital labour or digitally enabled jobs. We need to face those people, bring them to their full potential and ensure they can continue doing their jobs and make those decent jobs. Right now, we are talking about two classes—those with regular jobs enjoying protections, and those without. That is what we need to address.”
Mr. Ali Hussein, Chairman of KICTANet, highlighted the economic significance of gig workers in Kenya, stating: “The latest UNCTAD numbers available, 2021 Kenyan gig workers made [2 Trillion] up the dollars. And those are just the ones that UNCTAD can report. So if you think about how important that economy is.”
Mr. Hussein also advocated for creating the right incentives and protections for Kenyan gig workers, while ensuring that those providing work are not discouraged.
He noted the potential for growth in the gig economy with the advent of new tools like artificial intelligence, which are transforming traditional employment models.
He further cautioned against premature taxation:
“Let’s not have this mentality of so we must tax it to Kingdom Come. What are we taxing when we still don’t know what it is, let’s encourage let’s get people to work. Let’s get people to be declaring themselves because they have an incentive to do so.”
The roundtable meeting themed “Towards Improving Employment Conditions in the Gig Economy” underscored the need for legal clarity, fair contractual terms, social protections, occupational health and safety standards, and data protection measures to safeguard gig workers.
It also highlighted the importance of enabling workers to understand their rights and acquire relevant skills, while encouraging platforms to adopt fair work practices.
Kenya’s gig economy holds remarkable potential to drive employment, social mobility, and economic growth by connecting local talent to global markets.
However, realizing this potential hinges on closing regulatory gaps and fostering a fair, inclusive digital platform economy that balances innovation with workers’ rights.
As Ms. Mengede concluded: “Only if we have the regulations in place will the gig economy be able to unfold its full potential. We are hopeful that together, in partnership, we can succeed in that.”
This collaborative approach promises to transform Kenya’s gig economy into a sustainable and equitable source of livelihood for millions, supporting the country’s digital transition and socio-economic development.
