Trade and Labour Pathways for Decent Work in Kenya's Digital Economy 2025

Kenya stands at a critical juncture in the digital transition. The country is experiencing a rapid expansion of digitally enabled employment, much of it through cross-border trade and investment. Kenya’s digital economy includes standout sectors such as fintech, anchored by mobile phone-based money transfer service M-Pesa and a $11.2 billion ICT software market growing at nearly 6% annually.10 Emerging creative and gaming industries supported by Konza Digital Media City and a rising e-sports scene present growth opportunities. However, structural challenges persist. The sector remains dominated by informal and precarious labour practices, with 86.5% of Kenya’s workforce outside the formal labour market in non-agricultural sectors.11 Platform earnings often fall below minimum wage, especially in domestic work, data labelling and microtasking. Women and young people face systemic barriers such as income inequality, caregiving burdens and safety risks – amplifying their exclusion from high-value digital work. AI adds urgency, potentially automating up to 52% of jobs in Kenya,12 especially in low-skill, repetitive roles such as data entry and customer service (see Figure 1 for the global impact of AI on jobs). While AI could also involve new, higher-value jobs in model validation and content creation, limited rural infrastructure and low enrolment (25%) in science, technology, engineering and mathematics (STEM) courses13 pose constraints. Without further deliberate investment in skills, protections and inclusive governance, Kenya risks a deepening digital divide. In this context, this study was undertaken in collaboration with Africa Practice14 as part of the Trade and Labour Programme. Through close to 40 structured interviews with government officials, trade unions, worker groups, digital platforms, private-sector actors and academic experts, the study aims to identify policy and business pathways for decent work in Kenya’s digital economy. These interviews were supplemented by a multistakeholder workshop in Nairobi. The study focuses on three main questions: 1. What are the key labour challenges in the digital economy in Kenya, given its important position in international digital trade and investment flows? 2. What government actions are needed at the national and international levels to improve digital labour opportunities and outcomes in Kenya, including through trade and investment policies? 3. What business actions are needed to improve labour outcomes in digital supply chains, and where is more guidance needed? Combining desk research and stakeholder insights, the study identifies coordinated regulatory, trade and investment pathways to ensure that digital transformation is inclusive and sustainable.Global impact of AI on jobs, 2025–2030 FIGURE 1 180 160 140 120 100 80 60 40 20 0Number of jobs (in millions)92170 Jobs displaced by AI Jobs created by AI Source: World Economic Forum. (2025). Future of Jobs Report 2025 Trade and Labour: Pathways for Decent Work in Kenya’s Digital Economy 6