TRANSFORMING KENYA’S DIGITAL ECONOMY

New toolkit offers policy roadmap to reform the gig economy and impact millions of workers

A groundbreaking new toolkit, developed in collaboration with the Mastercard Foundation, eMobilis Technology Institute, and Africa Practice, offers a comprehensive roadmap to reform Kenya’s gig economy and create a more equitable and sustainable sector for over one million workers and businesses alike.

The new toolkit, titled “A Policy Guide for Digital Economy Progress,” is the culmination of extensive research and engagement with key stakeholders in the gig and digital economy. It offers a detailed policy proposal to address the pressing challenges faced by digitally delivering gig workers and promote the sector’s growth and development.

Formally recognized in 2007 under Kenya Vision 2030, Kenya’s gig economy significantly contributes to the overall GDP of the Information and Communication Technology (ICT) sector, increasing from 1.4 percent in 2017 to 2.4 percent in 2021. Currently, 1.2 million workers, most of whom operate within the informal sector, are employed in the gig economy. With the sector’s annual value estimated at USD 109 million, gig work has become a cornerstone of the digital economy. However, despite this growth, gig workers face numerous obstacles, from algorithmic bias on global platforms to limited legal protections in Kenya.

“A Policy Guide for Digital Economy Progress” offers actionable recommendations to help Kenya’s gig economy reach its full potential. The toolkit uses a systems-change approach to strengthening and leveraging the connection between labour protection and a conducive environment for businesses, such as digital labour platforms and business-process-outsourcing enterprises. It proposes five key interventions, including the establishment of a tripartite forum to set industry standards and a multi-purpose gig worker registration platform. The guide also emphasises the need for legal reforms to improve protections for gig workers under the Employment Act 2007 and other labour laws, while incentivising businesses to invest in dignified gig work.

“As a leader in digital skills training, we see firsthand the transformative power of Kenya’s gig economy. This guide provides a clear pathway to create an environment where gig workers can access better opportunities, and where businesses can invest with confidence in this rapidly growing sector,” said Ken Mwenda, eMobilis Managing Director and Co-founder.

The guide has been developed through extensive research and engagement with over 190 stakeholders, including gig workers, job providers, and policymakers. Their voices and insights have shaped this policy proposal, ensuring that it reflects the needs and aspirations of those most affected by the sector’s development.

Richard Kiplagat, Managing Director of East Africa and Group Chief Commercial Officer at Africa Practice said, “This toolkit represents a significant step forward in shaping the future of Kenya’s gig economy. By addressing regulatory gaps and advocating for worker protections, we aim to create a fair and sustainable digital ecosystem that allows Kenya’s young people to thrive and compete on a global scale.”

With detailed insights on the legal status, wage protection, occupational health and safety, and social protections of gig workers, the guide offers a practical approach to addressing existing gaps in Kenya’s labour policy framework. It also outlines the steps needed to expand special economic zones to accommodate the virtual, international nature of gig work.

The launch occasion invites policymakers, industry leaders, gig workers, and media representatives to join the discussion and explore how the policy guide can drive positive change for Kenya’s gig economy. The toolkit represents a crucial milestone for Kenya’s gig economy, providing actionable steps to build a resilient and inclusive digital workforce. With actionable strategies to enhance worker protections, establish industry standards and incentivise investment, the guide positions Kenya on a path to becoming a global leader in the gig economy.

As stakeholders from various sectors collaborate to implement these recommendations, the toolkit catalyzes sustainable economic prosperity, fostering meaningful change within communities and establishing Kenya as a leader in digital innovation in Africa.