To free up some space, you can do any or all of the following.
From the screen that you took the screenshot from above, you can select apps such as WhatsApp, Google Maps, Messenger etc, delete them, and then reinstall them form the App Store. That will get rid of all the junk that apps such as these accumulate each time you use them.
You should also check that you have Optimise iPhone Storage selected, by going to Settings > Photos & Camera.
You also said that you use iCloud to store your photos, so once you've ensured that your iCloud Photo Library is on, and you're optimising your iPhone storage, the other thing I would recommend is erasing all the content and settings from your phone, and then setting it up again.
To do this, make an iCloud backup of your phone, and once that's done, go to Settings > General > Erase All Content and Settings. You'll have to sign out of Find My iPhone first.
Then re-start your phone like you did when you first bought it, but don't set it cup as a 'New iPhone', instead restore it from your most recent iCloud back-up. That will give you as much free space as possible in your 16Gb iPhone. Your photos will sync back onto your phone from your iCloud Photo Library, but will take a little time to do so depending on your wi-fi connection. Goes without saying of course, make sure you're on a stable wi-fi connection to do all of the above.