Categories: Technology

Transforming Kenya’s digital economy: A new toolkit to reform the gig economy and empower millions of workers

In a significant step toward a more inclusive and sustainable digital economy, a new policy toolkit has been launched to support the transformation of Kenya’s gig economy.

 

Developed through a partnership between the Mastercard Foundation, eMobilis Technology Institute, and Africa Practice, the toolkit, titled “A Policy Guide for Digital Economy Progress,” is designed to guide policy reform in the gig sector, benefiting over one million workers and fostering a more sustainable business environment.

The toolkit is a result of extensive consultations with more than 190 stakeholders, including gig workers, job providers, and policymakers. It outlines key strategies to address some of the critical challenges faced by Kenya’s gig workers, such as algorithmic bias on global platforms and the lack of comprehensive legal protections.

The guide provides a roadmap for creating a fairer, more efficient ecosystem that bridges labour protections with a thriving business environment for digital labour platforms and business-process-outsourcing (BPO) enterprises.

Since its recognition in Kenya Vision 2030 in 2007, the gig economy has become an essential pillar of Kenya’s Information and Communication Technology (ICT) sector. By 2021, the sector had grown significantly, contributing 2.4% to the nation’s GDP, up from 1.4% in 2017. Today, 1.2 million Kenyans are employed within the gig economy, with its annual value estimated at USD 109 million.

However, despite this growth, most gig workers operate in informal settings, facing inconsistent income, limited legal protections, and minimal access to social benefits. This toolkit aims to address these gaps, offering actionable policies that could transform gig work into a viable career path for millions of Kenyans.

Establishing a Tripartite Forum – A forum involving government, gig workers, and employers to set industry standards and promote transparency .Creating a Multi-Purpose Registration Platform  A central registry for gig workers, improving data management, transparency, and access to benefits.

Updating the Employment Act – Recommendations to adapt Kenya’s labour laws to better protect gig workers.Expanding Special Economic Zones – Proposing adjustments to support the virtual and international nature of gig work. Incentivizing Investment – Proposals to encourage businesses to invest in Kenya’s gig economy and prioritize dignified working conditions.

Ken Mwenda, Managing Director and Co-founder of eMobilis, highlighted the potential of this policy guide to enhance digital opportunities. “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,” Mwenda stated.

The guide underscores the need to expand legal protections, ensure fair wages, and improve occupational health and safety standards for gig workers. It also addresses challenges unique to digital platforms, such as the impact of algorithmic bias and the need for accountability among global tech firms operating in Kenya.

Richard Kiplagat, Managing Director of East Africa and Group Chief Commercial Officer at Africa Practice, emphasized the toolkit’s role in shaping a fairer 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,” he remarked.

The toolkit was launched at an event that brought together policymakers, industry leaders, gig workers, and the media. It highlighted the critical role of the gig economy in Kenya’s economic growth and emphasized the toolkit’s potential to drive meaningful reform. By implementing its recommendations, Kenya could set a precedent for other countries seeking to support their own gig economies.

As the toolkit’s policies take shape, Kenya stands poised to become a model for digital innovation in Africa, demonstrating how inclusive economic growth can address social challenges while supporting sustainable business practices.

Marx Ali

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