COVID-19 exposes risks and opportunities in Kenya's gig economy

By CGAP


In Kenya, CGAP finds that earnings for gig workers offering artisanal and personal services are down by about 90 percent because of government-imposed restrictions to contain the spread of the Coronavirus.

However, platforms that facilitate logistics and movement of goods reported a surge in business, CGAP notes.

CGAP has been interviewing gig workers and platforms in Nairobi in order to assess the immediate impact of the COVID-19 crisis on their livelihoods and also offer solutions

Several platforms told CGAP that while they would like to support the workers, they lack the funds given the sharp declines in their businesses. They, however, see their payment infrastructure as a channel for government to route payments or loans to workers

"The current crisis has put into even starker relief how convenient, appropriately structured savings, loans and insurance products designed for gig workers could help stabilize livelihoods in the face of an economic shock. Unfortunately, few such solutions exist, and we will be redoubling our efforts to pilot such longer-term mitigants for the next crisis"- CGAP.

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