Kenya: Gig economy, the future of work?

The gig economy in Kenya is rapidly becoming a crucial pathway to socio-economic development and employment creation. With the Kenya Online Gig Economy valued at $109 million USD in 2020 and employing over 36,000 gig workers, the industry is experiencing significant growth. John Frank, CEO of Ben Kiko Finance, shed light on the sector in a recent interview with CNBC Africa, emphasizing its importance, especially among the youth. The rise of the gig economy in Kenya can be attributed to factors such as increasing internet penetration and convenient payment methods. In a country where a significant portion of the population relies on the informal sector for income, the shift towards online gig work presents new opportunities for young people to connect with clients, offer services, and receive payments with ease. The emergence of the COVID-19 pandemic has further accelerated the growth of the gig economy in Kenya. The pandemic forced people to think outside the box and explore alternative income-generating opportunities. Many individuals who were previously hesitant to engage in gig work due to traditional norms and practices have now embraced the online gig economy as a viable source of income. This shift in mindset has led to a surge in the number of gig workers in Kenya, with the industry poised for continued growth in the coming years. According to projections by Google and IFC, the Kenya Online Gig Economy is expected to surpass $345 million USD by 2023, demonstrating the immense potential of the sector. Across Africa, the gig economy is estimated to reach $180 billion USD by the same year, highlighting the significant economic impact of online gig work. The prospect of a thriving gig economy has not gone unnoticed, with many young people already reaping the benefits of flexible opportunities and lucrative earnings. As John Frank mentioned in the interview, a substantial number of his friends are successfully making a comfortable living from gig work, with monthly earnings reaching upwards of $1000 USD. This financial stability has not only transformed the lives of individual gig workers but has also contributed to the overall economic growth of Kenya. With a promising outlook for the gig economy in the country, it is expected that by 2025, half of the youth population will be actively engaged in gig work. The gig economy in Kenya is indeed shaping the future of work, offering a sustainable and rewarding alternative to traditional employment.