How Kenya’s Gig Economy Toolkit Aims to Boost Worker Protections and Industry Standards

A transformative new toolkit, A Policy Guide for Digital Economy Progress, has been introduced to reshape the future of Kenya’s gig economy, directly impacting over 1.2 million workers. Developed in partnership with the Mastercard Foundation, eMobilis Technology Institute, and Africa Practice, this comprehensive roadmap addresses the growing pains and potential of Kenya’s gig sector, proposing a strategic approach to building a fairer, more sustainable digital economy.

Kenya’s gig economy, recognized formally under the Vision 2030 initiative, has grown rapidly, with its contribution to the ICT sector GDP doubling from 1.4% in 2017 to 2.4% by 2021. Valued at approximately USD 109 million, this sector employs a substantial portion of Kenya’s informal workforce. However, despite this growth, gig workers often face unique challenges such as algorithmic bias on global platforms, limited legal protections, and a lack of clear industry standards. The new toolkit seeks to bridge these gaps, providing actionable solutions to create a more inclusive and resilient gig economy.

Understanding the Toolkit: Key Interventions for Progress

The toolkit, A Policy Guide for Digital Economy Progress, was born out of extensive research and consultations with over 190 stakeholders, including gig workers, employers, and policymakers. It proposes five critical interventions to reform and strengthen Kenya’s gig sector, particularly focusing on labor protection, legal reform, and business-friendly policies. Here’s a closer look at the core recommendations:

1. Establishing a Tripartite Forum:
   A central proposal in the toolkit is the establishment of a tripartite forum, involving workers, employers, and government representatives, to set industry standards. This forum would serve as a platform for collaboration, allowing each party to contribute to policies that balance the needs of workers and businesses alike. Such a structure can enable Kenya to set standards that ensure fair treatment for gig workers while fostering a business environment conducive to growth and innovation.
2. Implementing a Multi-purpose Gig Worker Registration Platform:
   The toolkit recommends a registration platform for gig workers, providing a comprehensive database that can streamline industry operations and offer targeted support. This platform would centralize information on worker skill sets, experience, and certifications, benefiting both workers and businesses. It would also enhance government oversight and regulation of the gig sector, enabling policymakers to address challenges and gaps with data-driven insights.
3. Amending the Employment Act 2007 and Other Labor Laws:
   Recognizing the need for legal reforms, the toolkit advocates for changes to the Employment Act 2007 to extend protections to gig workers. Currently, gig workers lack essential rights that are standard in more traditional employment settings, such as wage protection, occupational health, and safety guarantees. By amending existing labor laws, the guide aims to introduce legal safeguards for these workers, supporting fair treatment across Kenya’s digital workforce.
4. Incentivizing Investment in Dignified Gig Work:
   The toolkit acknowledges the importance of private sector investment in dignified gig work. To this end, it proposes incentives for businesses that commit to fair labor practices. These could include tax breaks, grant programs, or subsidies, all aimed at encouraging companies to uphold high standards in their gig workforce. This approach also aligns with the toolkit’s systems-change strategy, fostering a sustainable ecosystem that benefits workers and businesses.
5. Expanding Special Economic Zones for Gig Work:
   To accommodate the virtual and international nature of gig work, the toolkit proposes expanding special economic zones (SEZs) to include facilities for digital and outsourced labor. SEZs have traditionally offered favorable conditions for manufacturing and export-oriented industries, but this shift would recognize and support the unique requirements of the digital economy. By extending SEZ benefits to the gig economy, Kenya can attract global digital platforms and create new opportunities for local workers.

The Gig Economy’s Role in Kenya’s Vision 2030

Kenya’s gig economy was first spotlighted in Vision 2030, the government’s strategic blueprint for economic transformation. The gig sector, as a rapidly expanding segment of the ICT sector, has become integral to achieving this vision. Gig work now employs an estimated 1.2 million individuals across Kenya, offering flexibility and income-generating opportunities, particularly for young people who make up the majority of the gig workforce.

However, the sector’s growth has not come without challenges. From limited legal protections to bias and lack of representation on global platforms, gig workers often face vulnerabilities that traditional employees do not encounter. By addressing these challenges, the new toolkit positions Kenya to build a gig economy that is both robust and inclusive, setting a precedent for other nations aiming to leverage the potential of digital work.

Addressing Worker Vulnerabilities: Perspectives from eMobilis and Africa Practice

Ken Mwenda, Co-founder and Managing Director of eMobilis, emphasized the significant potential for change that this toolkit represents. “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.”

According to Richard Kiplagat, Managing Director of East Africa and Group Chief Commercial Officer at Africa Practice, the toolkit is a landmark step in advancing Kenya’s gig economy. “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.”

Legal Status, Wage Protection, and Social Protections

The toolkit provides actionable insights on enhancing the legal framework surrounding gig work. It stresses the importance of wage protections, social security provisions, and safe working conditions to ensure gig workers are safeguarded.

For instance, with rising concerns about job security and fair compensation on digital platforms, the guide proposes a systematic approach to implement wage protection measures. Furthermore, it calls for occupational health and safety protocols to be tailored for gig work, promoting safe and fair working conditions.

Special Economic Zones: Recognizing the Digital Workforce

One of the most innovative aspects of the toolkit is its recommendation to expand SEZs to accommodate virtual and outsourced labor. This policy adjustment would provide a conducive environment for digital labor platforms and BPOs, incentivizing them to invest in Kenya. With SEZs traditionally focused on manufacturing, this shift acknowledges the global nature of gig work and the potential for Kenya to attract foreign investment and create local jobs through digital platforms.

A Call to Action for Policymakers and Industry Leaders

The launch event for the toolkit invites policymakers, industry leaders, gig workers, and the media to explore the potential of these recommendations. The toolkit’s collaborative approach underscores the need for stakeholder involvement, particularly for addressing the nuances of Kenya’s digital economy. By bringing together voices from various sectors, the event aims to catalyze meaningful discussions on implementing the guide’s recommendations to achieve a resilient and sustainable gig economy.

Paving the Way for Kenya as a Global Leader in Digital Innovation

In an increasingly digitalized world, the toolkit’s launch signals Kenya’s readiness to lead in the gig economy. By positioning Kenya as a model for digital economy policies, this initiative aligns with the government’s broader goals under Vision 2030. The toolkit not only promises to improve conditions for gig workers but also aims to attract investment and foster a thriving digital economy that resonates on a global scale.

As stakeholders work to implement the toolkit’s recommendations, this initiative paves the way for sustainable economic prosperity, community empowerment, and increased digital inclusivity. Kenya’s gig economy has the potential to become a benchmark for innovation and worker-centered reforms in the African digital landscape and beyond.

The comprehensive roadmap provided by A Policy Guide for Digital Economy Progress is a significant stride towards a balanced gig economy that values both business potential and worker rights, embodying Kenya’s commitment to a fair, future-focused digital workforce.