Kenya faces supply chain constraints and gig economy regulatory shifts

Kenya is navigating complex economic shifts characterized by a supply chain crisis and a rapidly evolving digital labor market. According to the Stanbic Bank Kenya Purchasing Managers’ Index, business confidence has reached multi-year highs due to rising customer demand and digital transformation. However, output has declined for five consecutive months due to inflationary pressures, rising input costs, and tight liquidity. Small and medium enterprises face particular difficulties securing working capital due to high interest rates and stringent collateral requirements.

Simultaneously, Kenya's platform economy—valued at approximately Sh133 billion—is driving livelihoods for an estimated 1.5 million workers. This shift toward gig work, including ride-hailing and food delivery, has created a regulatory gap. Following the adoption of Convention No. 193 on Decent Work in the Platform Economy at the International Labour Conference, there is an increasing call for Kenya to develop nuanced labor regulations. The goal is to protect platform workers while maintaining the flexibility and innovation inherent in the digital ecosystem.