Kenya’s gig economy has grown rapidly over the past decade, driven by rising smartphone penetration and persistent urban youth unemployment. By 2025, over 1.2 million Kenyans were working on platforms such as Uber, Bolt, Glovo, Sendy, Fiverr, and Upwork. These platforms have become major employers, contributing heavily to the country’s economy. At the center of this economy are three groups of workers, which include motorcycle delivery riders, ride-hailing drivers, and online freelancers.
While gig work provides flexible earning opportunities, these workers face unstable incomes, high operating costs, and little to no social protection. To manage daily needs and business expenses, many rely on loan apps. Digital lenders like Tala, Branch, and Zenka have stepped into this space, offering instant loans through mobile phones. Using alternative data, such as mobile usage patterns, transaction histories, and gig platform earnings, they approve loans without requiring payslips or collateral. Loans range from KSh 500 to KSh 50,000, with daily interest starting at 0.3%. However, repayment terms and high rates, which can reach up to 15% monthly, have also created cycles of debt, drawing regulatory scrutiny.
Riders: Borrowing to Stay on the Road
Motorcycle riders powering delivery platforms like Glovo and Sendy are among the most reliant on digital credit. A 2025 IDinsight study of 1,200 riders in Nairobi found that 64% financed their motorcycles either through loans or rentals, often relying on informal lenders or loan apps. Their net average earnings stand approximately at KSh 46.5 per hour, about KSh 9,368 per month. But these earnings fluctuate significantly depending on fuel prices, which range between KSh 20–30 per liter, and seasonal demand, which drops during heavy rains.
Riders typically work more than 66 hours a week, yet 70% admit to skipping meals or falling behind on rent to keep up with debt repayments. Loan apps help by disbursing money instantly through M-Pesa, using trip data and ride histories for scoring. Branch, for example, evaluates completed trips instead of traditional payslips to approve loans. These loans cover fuel, repairs, and even food during slow days.
Still, many riders remain trapped. High monthly rates and multiple overlapping loans push them into debt cycles. To survive, 41% of riders juggle multiple apps, such as Glovo, Uber Eats, and Bolt Food, in search of more orders. The Kenya Union of Gig Workers (KUGWO) has repeatedly pointed out that unpaid wait times worsen the financial strain, calling for platform-linked loans with flexible repayment schedules directly deducted from rider earnings.
Ride-Hailing Drivers: Cars, Commissions, and Credit
Ride-hailing drivers on Uber, Bolt, and InDrive face similar financial struggles, though their challenges are tied to car ownership. Many drivers finance vehicles through banks, microfinance institutions, or digital loans. Owning a car is seen as both an economic opportunity and a symbol of independence, but it comes with high costs.
A Conversation Africa survey of 300 drivers revealed that both formal and informal lenders are keen to finance drivers because of predictable income flows from ride-hailing apps. In 2024, InDrive launched driver-specific loans covering repairs and fuel, disbursed directly via the platform. Drivers earn an average of KSh 20,621 monthly during peak demand periods, but this drops to around KSh 15,000 once commissions of 20–25% and maintenance costs are deducted.
The financial pressures were highlighted during the April 2025 strike, when 5,000 Nairobi-based drivers staged protests against opaque app algorithms and declining pay rates. Many had to borrow money just to sustain themselves while their cars remained idle during the strike.
Loan apps, particularly Tala, which is licensed by the Central Bank of Kenya, play a key role in the gig sector. Drivers access advances between KSh 10,000 and KSh 30,000, with approvals based on GPS data, ride history, and mobile transactions. Yet suspensions remain a major problem: about 44% of drivers report being deactivated without clear explanation, cutting off income and jeopardizing loan repayments. With few avenues for appeal, many fall back to offline taxi services that generate lower returns.
Freelancers: Credit for the Digital Workforce
Freelancers are the fastest-growing segment of Kenya’s gig economy, earning through platforms like Upwork and Fiverr. As of 2025, there are thousands of freelancers actively engaged in online work, ranging from design and writing to coding and virtual assistance. Monthly earnings vary widely, from KSh 22,000 to KSh 69,000. But freelancers often face unpredictable income flows caused by client delays, cancellations, or stiff global competition.
A 2025 Brookings Institution report identified irregular income as the biggest challenge facing freelancers. About 60% have no access to traditional bank credit due to lack of payslips or collateral. Loan apps bridge this gap by analyzing platform earnings. Tools such as Rollee, launched in 2025, allow freelancers to share anonymized invoices and payout histories with lenders for instant credit scoring.
Digital lenders like Tala and Zenka dominate the space, offering microloans up to KSh 20,000 specifically designed for “income smoothing.” Repayments are often linked directly to gig platform payouts. Unlike salaried employees, freelancers benefit from a no-collateral lending model that considers their digital portfolios.
However, exclusion still exists. Reports from LinkedIn reveal that 40% of freelancers are denied loans because of irregular income streams, forcing many to borrow from informal lenders at interest rates above 20%. While international platforms like Fiverr now integrate with Payoneer to improve remittances, surveys by CGAP reveal freelancers want more: embedded savings tools, health insurance, and pension options.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.