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Home Opinion

Why the gig economy needs better financial integration

Ivy Mutali by Ivy Mutali
June 13, 2025
in Opinion
Reading Time: 2 mins read

Kenya’s vibrant gig economy fueled by digital platforms, freelancing and informal trade has redefined work for millions, especially the youth. From boda-boda riders and content creators to online tutors and delivery workers, the informal and self-employed segment now constitutes a large, dynamic slice of the country’s workforce. But while this shift has expanded income opportunities, it has also exposed a glaring gap: financial exclusion from structured investment opportunities.

Traditional investment products in Kenya such as unit trusts, real estate or pension plans are often tailored for salaried individuals. Requirements like fixed monthly contributions, proof of employment or lengthy onboarding processes discourage gig workers, who typically earn irregular income. As a result, a significant portion of this population relies on informal savings methods or remains uninvested entirely.

This is a missed opportunity both for individuals and for the broader economy.

With the gig economy projected to grow even more rapidly in Kenya having contributed to Kenya’s ICT sector GDP 2.4% in 2021 from 1.4% in 2017, financial institutions must rethink how investment solutions are designed and delivered. Flexibility is key. Products that allow micro-investments, with no penalties for missed contributions, could unlock participation from low-income or irregular earners. Mobile-first platforms, already trusted for digital lending and savings, can be repurposed to offer simplified investment access for example, money market funds like the Cytonn Money Market Fund that accept as little as KES 100.0 per deposit.

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Another overlooked avenue is integrating investment features into gig platforms themselves. For instance, a ride-hailing app could partner with a fund manager to enable drivers to automatically set aside a small percentage of earnings into a retirement plan. Embedding financial tools into platforms where workers already earn could normalize the habit of investing, without requiring formal employment.

The challenge, however, isn’t just about product innovation. It’s also about financial literacy. Many gig workers are unaware of the investment options available or remain skeptical due to past experiences with pyramid schemes and informal chamas that failed. Education must go hand in hand with product access to build trust and confidence.

If Kenya truly wants to harness the full potential of its gig economy, then integrating it into the formal investment landscape is no longer optional, it’s essential. The hustle deserves a future, and that future depends on turning income into wealth.

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