The term ‘Gig Work’ was first coined around 1915 by jazz musicians to describe short-term musical performances. Today, ‘Gig Work’, more recently popularized through platform-based work, refers to the exchange of labor for money on a short-term or payment-by-task basis. Currently, gig work, flexi-work, on-call work, freelance, and other terms represent non-standard employment (NSE) forms that deviate from conventional employment structures. When these forms become widespread, they collectively contribute to what is known as the "Gig Economy.”

The global gig economy has seen substantial growth over the past five years. In 2019, the market size was estimated at $204 billion. By 2024, it had grown to $561.2 billion, CAGR of 22.4%. The number of gig workers worldwide has similarly increased from an estimated 1.1 billion in 2019 to an estimated 1.6 billion by the end of 2024. This expansion is driven by the growing demand for flexible work arrangements, advancements in technology, and the proliferation of online platforms.

Kenya has also made notable progress in its gig economy, with approximately 1.2 million gig workers 3 (4.7% of Kenya’s workforce), placing its gig economy market size at about $345 million as of 2023, up from $109 million in 2019 (CAGR of 33.9%).

The expansion in Kenya’s gig economy is driven by the country’s high unemployment rates (12.7%) 4 and a youthful population. According to the 2019 population, 75% of the Kenyan population (35.7 million people) are youths (under the age of 35), and the informal sector, which encompasses much of the gig economy, accounts for 83.6% (14.9 million) of Kenya’s working population. Ride- hailing services and online professional work account for the largest share (40%) of this sector's value5.

Kenya’s gig economy growth is also closely tied to increased digital connectivity. As of January 2024, Kenya had 22.7 million internet users, 32.4 million mobile phone users, and approximately 63.9 million mobile connections (excluding IoT).

The high penetration of mobile phones and the internet has enabled online platforms to connect freelancers with clients more efficiently.

The majority of gig workers in Kenya earn between KES 10,000 and KES 40,000 per month, though a few outliers may earn over KES 50,000. However, the earnings are often inconsistent and unreliable, particularly for those relying solely on gig work. Stabilizing these earnings could greatly enhance the livelihoods of Kenya's gig workers.

A significant proportion of Kenya's gig workers are male (~63%) and below 35 years old (~75%). Older individuals are less likely to participate, with 40% of gig work involving physically demanding and mentally stressful jobs, especially in ride-hailing and delivery services. This demographic may also view gig work as a temporary solution while seeking more stable employment.

In terms of education, most gig workers (43%) have completed only high school, a majority (55%) have some form of tertiary education, with a mere 2% holding a Master’s degree. This can be attributed to the fact that many gig jobs (60%) do not require advanced skills or formal education. For instance, ride-hailing platforms, which constituted about 50% of the Kenyan gig economy in 2024, require minimal qualifications; a driving license and an approved vehicle. Consequently, additional expertise does not necessarily lead to better pay or opportunities in this sector, contributing to underemployment among more highly educated gig workers.

The gig economy in Kenya also lacks structured career progression, as workers are hired for specific tasks without access to training, mentorship, or promotional pathways. Additionally, the focus on short-term, task-based work and unstable income makes it difficult for gig workers to invest in skill development or advance in their careers.

 

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