NAIROBI, Kenya — Kenya’s gig economy is rapidly emerging as a critical economic lifeline for young people, as new data reveals a decisive shift away from traditional employment toward flexible, digital work.
According to the Ipsos Gig Economy Market Assessment Report (March 2026), the country’s labour force has expanded to approximately 23 million people. However, job creation remains overwhelmingly informal, highlighting structural challenges within the formal employment sector.
In 2024 alone, Kenya created an estimated 782,300 jobs, nearly 90 per cent of which were in the informal sector. Within this landscape, digital platforms are increasingly absorbing job seekers, particularly young people who face disproportionately high unemployment rates.
“Higher youth unemployment compared to the national average is influencing how young Kenyans enter the labour market. Many are turning to gig work because it offers a flexible and accessible pathway into income generation,” the report stated.
“With low barriers to entry and minimal onboarding requirements, young people can remain economically active even as they search for more stable opportunities. This is fundamentally reshaping how the transition from education to work happens.”
The report highlights the rapid growth of Kenya’s gig ecosystem, with active platforms increasing from just 11 in 2015 to more than 40 by 2022. These platforms span sectors such as ride-hailing, delivery services, freelance work, and e-commerce.
Today, the gig economy is valued at over $1 billion, supporting more than 1.5 million workers and contributing approximately 0.85 per cent to Kenya’s GDP.
For many young Kenyans, the shift into gig work is driven less by preference and more by necessity.
“There are no jobs in the formal sector, and competition is extremely high for the few opportunities available. Gig work becomes the most immediate option because you can start earning almost instantly. It may not be perfect, but it allows you to meet daily needs and remain independent. For many of us, it is the only practical way to survive,” one freelancer is quoted in the report.
Beyond income generation, the gig economy is increasingly functioning as a buffer against economic shocks. Workers rely on daily or weekly earnings to meet essential household expenses such as rent, food, and education.
“Gig platforms are increasingly functioning as a shock absorber during periods of economic volatility. They provide income access for underemployed populations and support daily cash-flow needs for households. This flexibility allows workers to manage financial uncertainty while maintaining a degree of stability. In many cases, gig work is not supplementary, it is central to household survival,” the report noted.
Government-backed initiatives such as Ajira Digital Program are reinforcing this transition by equipping young people with digital skills to access online work. The programme reflects growing policy recognition of the gig economy as a key pillar of employment creation.
Also Read: ProGigFinder: Uganda’s digital marketplace connecting jobs and talent across Africa
The Ipsos study, which also covered Nigeria, South Africa, Ghana, and Tanzania, used a mixed-methods approach combining surveys, focus group discussions, and in-depth interviews.
It targeted urban adults with smartphone access, using a 95 per cent confidence level and a ±6.2 per cent margin of error to ensure reliable insights.
Analysts say the findings point to a deeper structural transformation in Kenya’s labour market, where digital platforms are no longer peripheral but central to employment.
While the gig economy offers flexibility and immediate income, concerns remain over job security, income stability, and lack of social protections for workers.
As Kenya’s workforce continues to grow, the sustainability of this model, and the policies needed to support it, will likely shape the country’s economic trajectory in the years ahead.
