Kenya Rolls Out Guide for Gig Economy Growth

(Nairobi) – Kenya has launched a new policy guide aimed at shaping the future of the gig economy, supporting its growth, and improving protections for workers in the sector.

Developed with the support of the Mastercard Foundation, eMobilis Technology Institute, and Africa Practice, the “Policy Guide for Digital Economy Progress” presents a comprehensive strategy for reforming Kenya’s gig economy. The guide is designed to create a more equitable and sustainable environment for the over one million workers and businesses engaged in this growing sector.

According to the creators of the guide, it offers a detailed framework to address key challenges faced by gig workers, particularly those delivering digital services. The toolkit aims to help the sector grow while improving the working conditions for gig workers.

Ken Mwenda, Managing Director and Co-Founder of eMobilis, emphasized the importance of connecting labor protection with a supportive environment for businesses. He explained that, as a leader in digital skills training, eMobilis has witnessed firsthand the impact of the gig economy. He believes the guide will provide a clear pathway for creating better opportunities for gig workers and encourage businesses to invest confidently in the sector.

The guide outlines five key interventions, including the creation of a tripartite forum to establish industry standards and a multi-purpose platform to register gig workers. It also stresses the need for legal reforms to better protect gig workers, particularly under the Employment Act of 2007 and other relevant labor laws. These reforms would also incentivize businesses to invest in dignified and fair gig work.

Kenya’s gig economy, which was formally recognized in 2007 as part of Kenya Vision 2030, has become a significant contributor to the country’s overall economic output, particularly within the Information and Communication Technology (ICT) sector. The contribution of the gig economy to the ICT sector’s GDP has increased from 1.4% in 2017 to 2.4% in 2021.

Currently, the gig economy in Kenya employs about 1.2 million workers, most of whom operate in the informal sector. The sector’s annual value is estimated at USD 109 million, making it an integral part of Kenya’s digital economy. Despite this growth, gig workers continue to face challenges, such as algorithmic bias on global platforms and insufficient legal protections within Kenya.

The policy guide was developed through extensive research and consultation with over 190 stakeholders, including gig workers, job providers, and policymakers. These stakeholders’ insights helped shape the proposal, ensuring that it addresses the real needs of those most impacted by the sector’s growth.

Richard Kiplagat, Managing Director for East Africa and Group Chief Commercial Officer at Africa Practice, highlighted the importance of this toolkit as a step toward improving the regulatory environment for Kenya’s gig economy. He said the guide advocates for worker protections while promoting a fair and sustainable digital ecosystem that enables Kenya’s youth to thrive and compete globally.

The policy guide covers various aspects of the gig economy, including legal status, wage protection, occupational health and safety, and social protections for workers. It also offers practical recommendations for expanding special economic zones to accommodate the virtual and international nature of gig work.