KSh133 Billion Gig Economy: Why Kenya Must Rethink How It Regulates Platform Work

Unlike the proverbial 9-to-5 generation, today’s worker is a totally different kind of species. Imagine a young motorcyclist weaving through Nairobi’s notorious early morning traffic, ferrying his first passenger of the day as early as 6 am. By midday, as the commute demand cools, he logs onto an on-demand delivery app, rushing meals and groceries to offices across the city. As evening falls, he switches to a freelance marketplace to maximize his day’s earnings doing online tasks before logging off just in time for a college night class. This is not a glimpse into a distant future. This is the daily hustle for an estimated 1.5 million Kenyans whose livelihoods are powered by digital platforms.

For generations, the script for employment was a rigid mix of one employer, fixed hours, a physical workplace, and a monthly salary. As a result, our legacy labor laws were built around this exact model. However, technology has shattered that model, birthing a vibrant, fast-evolving gig economy now valued at an estimated KSh133 billion.

Just as old remedies cannot cure new maladies, innovation has outpaced regulation. Governments everywhere have found themselves playing catch-up. As different jurisdictions come to terms with the new digital reality, one pertinent question begs for an answer and that is, are platform workers, employees or independent contractors?

A historic turning point arrived this June at the 114th Session of the International Labour Conference in Geneva. Governments, employers, and labor unions from over 165 nations including Kenya closed a two-year debate by adopting Convention No. 193 on Decent Work in the Platform Economy.

This landmark framework offers Kenya a golden opportunity. By ignoring rigid, cookie-cut style regulations and embracing homegrown, flexible solutions, Kenya can set the standard for how developing economies balance worker protection with booming digital growth.

To regulate the platform economy effectively, policymakers must first demystify it. The first notion we need to unlearn is the assumption that the platform economy is a monolith. Nay, it is not a single industry. Rather, it is a vast, interconnected digital ecosystem that encompasses everything from ride-hailing and e-mobility to on-demand courier services and global freelance marketplaces.

At their core, these companies are technology platforms. Their fundamental job is to act as digital matchmakers, linking supply with demand in real-time like connecting local riders with restaurants, passengers with drivers, and freelance writers with global businesses.

Regulators frequently stumble by mistaking a delivery app for a traditional courier firm, or a ride-hailing app for a standard taxi company. Understanding this digital-matching framework is vital. Forcing old-school industrial rules onto digital marketplaces risks breaking the very infrastructure that makes these services efficient and affordable for everyday Kenyans.

Furthermore, the realities within this space are incredibly diverse. The day-to-day life of a virtual assistant writing code from a quiet room in Eldoret is worlds apart from a delivery courier navigating a torrential downpour on Nairobi’s highways. A blanket, heavy-handed regulatory approach simply will not work.

As a regional tech heavyweight, Kenya has a massive economic stake in getting this right. E-commerce and ride-hailing make up more than half of the country’s KSh133 billion platform market, making it one of the fastest-growing sectors in the nation.

This growth is not just about corporate revenue, it is a critical lifeline for Kenya’s youth. Every single year, roughly one million young Kenyans enter the job market. The formal economy is simply too small to absorb them all. Digital platforms have stepped into the gap, emerging as one of the fastest ways for young people to earn an honest living, build micro-enterprises, and get skin in the digital game. While gig work is not a magic wand for youth unemployment, it has become a cornerstone of our modern labor landscape.

In this regard, regulatory clarity serves everyone. Global and local capital thrives on predictability. If Kenya builds a clear, stable, and forward-thinking regulatory environment, it will continue to attract foreign investment, spur local tech innovation, and shield the livelihoods of millions.

As Kenya steps toward ratifying the Geneva Convention, policymakers must address a fundamental question: How do Kenyan gig workers view themselves? Do they want to be traditional employees, or do they see themselves as independent entrepreneurs using tech to reach customers?

Local market data consistently points to a clear answer and that is flexibility, autonomy, and being one’s own boss are the top reasons Kenyans join the platform economy. Many gig workers intentionally walk away from traditional employment because they want total control over their time and earning potential. Reclassifying these operators as traditional employees would strip away the very independence they value most. It would force platforms to shift to rigid, mandated shifts and exclusive contracts, effectively shutting out part-time earners, students, and those balancing multiple income streams.

The beauty of Convention No. 193 is that it avoids the lazy, “one-size-fits-all” mandate. It explicitly acknowledges that different countries have vastly different labor markets and economic realities, leaving room for nations to innovate based on local practice.

Kenya must resist the urge to copy-paste regulatory frameworks from Western capitals. Our high levels of economic informality and our world-famous mobile money culture demand unique, local solutions. We do not have to sacrifice worker protection to keep flexibility since we can easily achieve both.

Traditional social security frameworks rely heavily on an employer withholding money from a monthly paycheck. For a gig worker whose income fluctuates daily across various apps, this setup is completely broken.

Kenya can lead the globe by using its advanced mobile money ecosystem to create portable, micro-contributory social protections. Workers should be able to route micro-contributions directly from their daily digital earnings into a centralized pension or health insurance wallet. Whether they are delivering a meal, driving a passenger, or writing a corporate blog post, their benefits should seamlessly follow them from app to app.

For location-based gig workers, physical safety is the ultimate priority. Homegrown policies should encourage active partnerships between tech platforms, local county governments, and insurers to offer low-cost, on-demand occupational accident cover.

On the infrastructure front, building dedicated transit rest zones and electric motorcycle charging hubs in major urban centers would dramatically improve working conditions without stalling the sector’s commercial engine.

Instead of legislating based on assumptions, the state, platform operators, and worker representatives must sit at the same table to gather localized, hard data. Labor policy must be built on evidence and honest conversation with the workers themselves.

Implementing Convention No. 193 is not about blindly pleasing international bodies. It is about actively and intentionally designing the future of work for Kenya. By tailoring laws to Kenyan realities, protecting worker autonomy, and leaning into our digital strengths, we can build a model ecosystem.

The conversation cannot just be about regulators, corporate interests, or unions. It must be anchored on the real people using these apps to make a living every single day. If their aspirations guide our national policy, Kenya will successfully build a framework that protects workers, invites investment, and unlocks the full potential of our digital economy.

Related Content: Is The Gig Economy The Future Of Kenyan Investments?

By Kiplimo Kigen- Global Affairs Lead, Glovo Kenya