Kenya gig economy grows as youth turn to digital jobs

Kenya’s gig economy is fast becoming a critical lifeline for young people as new data highlights a decisive shift away from traditional employment toward flexible, digital work, a report has revealed.

Findings from the Ipsos Gig Economy Market Assessment Report (March 2026) show that while Kenya’s labour force continues to grow, reaching about 23 million people, job creation remains largely informal.

In 2024, an estimated 782,300 jobs were created, with nearly 90 per cent concentrated in the informal sector.

Within this environment, digital platforms are stepping in to absorb thousands of job seekers, particularly youth who face higher unemployment rates compared to the national average.

“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.”

According to the report, the number of active platforms has grown from just 11 in 2015 to more than 40 by 2022, driven by increasing demand for services such as ride-hailing, delivery, freelancing, and e-commerce.

Today, Kenya’s gig economy is valued at over $1 billion and supports more than 1.5 million workers, contributing roughly 0.85 per cent to the country’s GDP.

For many young people, the shift is less about choice and more about 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.

The report notes that beyond providing income, the gig economy is also acting as a buffer against economic shocks. Workers rely on daily or weekly earnings to meet essential household expenses, including 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 are further reinforcing this shift by equipping young people with skills to access online work, signalling a broader policy recognition of the sector’s growing importance.

A mixed-methods approach was used to generate actionable insights on gig economy participation across Kenya, Nigeria, South Africa, Ghana, and Tanzania, combining desk research, surveys, FGDs, and in-depth interviews.

Sample size was determined using Cochran’s formula at a 95 per cent confidence level, assuming maximum variability (p = 0.5).

The target population comprised urban adults with access to smartphones, ensuring relevance to the study objectives.

An acceptable ±6.2 per cent margin of error was applied, appropriate for directional and comparative analysis.