Trade and Labour: Pathways for Decent Work in Kenya’s Digital Economy

Kenya's digital economy is projected to reach $23 billion by 2025, yet it is characterized by significant 'decent work' deficits, including a lack of legal protections for 1.2 million gig workers and a digital divide where only 23.8% of households have internet access. The report argues that Kenya's core labour laws, last revised in 2007, are outdated and fail to account for platform-mediated work, leaving workers without minimum wages or social insurance. Furthermore, AI threatens to automate up to 52% of jobs, particularly in low-skill BPO and data entry roles. To mitigate these risks, the document recommends modernizing labour laws—potentially through a third 'worker' category—developing 'decent work toolkits' for businesses, and harmonizing labour standards across the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA).

• Kenya's digital economy is expanding rapidly and is expected to reach $23 billion by 2025, representing 9.24% of the country's GDP.
• Significant barriers to digital job access persist, with only 23.8% of households having internet access and a stark urban-rural divide, such as usage rates of 64.7% in Nairobi City compared to 9.1% in West Pokot.
• Approximately 1.2 million Kenyans are engaged in gig work, but most operate outside formal labour protections because Kenya's five core labour laws, last comprehensively revised in 2007, do not address platform-mediated or remote work.
• Earnings for microtasking platform workers in Kenya average KES 125 per hour, which is below the statutory hourly minimum wage of KES 135.9.
• Artificial Intelligence poses a severe structural risk to the labour market, with the potential to automate up to 52% of jobs in Kenya, specifically targeting low-skill, repetitive roles like data entry and customer service.
• The report proposes three legislative options to protect digital workers: introducing a third 'worker' category for those economically dependent on platforms, applying a rebuttable presumption of employee status, or extending targeted rights without changing legal classification.
• To improve BPO and digital sector conditions, the report suggests 'decent work toolkits' that include locally benchmarked wage baselines, mental health guidelines for content moderators, and algorithmic management transparency.
• Regional integration through the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA) is identified as a key pathway to harmonize digital labour standards and prevent a 'race to the bottom' in working conditions.

APA

World Economic Forum (2025). Trade and Labour: Pathways for Decent Work in Kenya’s Digital Economy. https://reports.weforum.org/docs/WEF_Trade_and_Labour_Pathways_for_Decent_Work_in_Kenya's_Digital_Economy_2025.pdf

Chicago

World Economic Forum. Trade and Labour: Pathways for Decent Work in Kenya’s Digital Economy. 2025. https://reports.weforum.org/docs/WEF_Trade_and_Labour_Pathways_for_Decent_Work_in_Kenya's_Digital_Economy_2025.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Trade and Labour: Pathways for Decent Work in Kenya’s Digital Economy |date=September 2025 |url=https://reports.weforum.org/docs/WEF_Trade_and_Labour_Pathways_for_Decent_Work_in_Kenya's_Digital_Economy_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025trade, author = {{World Economic Forum}}, title = {{Trade and Labour: Pathways for Decent Work in Kenya’s Digital Economy}}, institution = {World Economic Forum}, year = {2025}, month = sep, url = {https://reports.weforum.org/docs/WEF_Trade_and_Labour_Pathways_for_Decent_Work_in_Kenya's_Digital_Economy_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }