3rd-Dec-2025 • Alice Wambui • Gig Economy
In today's rapidly evolving business landscape, the gig economy has emerged as a transformative force, offering unprecedented opportunities for small and medium enterprises (SMEs) across Kenya and Africa. The gig economy refers to a decentralized workforce where temporary jobs are commonplace, typically characterized by freelance or short-term contracts.
The advent of the gig economy has disrupted traditional employment models, fostering a culture of flexibility, agility, and cost efficiency. For SMEs, these attributes can mean the difference between thriving and merely surviving in an increasingly competitive marketplace.
One of the most appealing aspects of the gig economy is its ability to provide businesses with flexibility. SMEs no longer need to maintain a permanent workforce, allowing them to scale up or down based on project demands.
For instance, if a Kenyan SME is preparing for a busy season, it can temporarily hire freelancers with specific skill sets, ensuring the necessary resources are available to meet increased demand. Conversely, during lean periods, businesses can reduce overheads by releasing temporary staff.
The gig economy also offers significant cost savings for SMEs. By avoiding the expense of benefits, taxes, and office space associated with full-time employees, businesses can redirect funds towards growth initiatives.
According to a report by PayPal, 40% of African freelancers earn more than their traditional counterparts, demonstrating the potential for increased profitability through the gig economy.
Moreover, SMEs can tap into a vast pool of skilled talent from around the world. This enables businesses to access specialized expertise that may not be available locally, driving innovation and productivity.