Grace Ashiru
Kenya’s ride-hailing customers are expected to pay higher fares soon, as Uber and Bolt are likely to follow the government’s new pricing and payment regulations. This follows a directive from Kenya’s Ministry for Roads and Transport after the Transport Workers Union-Kenya (TAWU) threatened legal action against the companies, accusing them of “exploitative and unfair labour practices.” Additionally, taxi drivers nationwide staged a protest in early November 2025, downing their tools to demand better working conditions.
The issue between ride-hailing apps and their drivers has been ongoing. Drivers have long argued that the current fares are unsustainable, making it hard to cover basic expenses like bills, vehicle maintenance, and fuel costs. Justus Mutua, spokesperson for the Amalgamation of Digital Taxis Associations in Kenya, noted that this suppression of fares has led to “reduced earnings, overwork, loan defaults, and a rise in vehicle repossessions.”
In response to these concerns, the Kenyan government has sided with the drivers. The Ministry of Transport has instructed app owners to immediately adopt the pricing guidelines suggested by the Automobile Association of Kenya (AAK), starting in 2023. Under the new directive, per-kilometre rates will rise significantly, with an approximate 50% increase:
- For small engines (up to 1050cc), the pay per kilometre will rise from around Sh22 (USD 0.17) to Sh33.1 (USD 0.25).
- For medium engines (between 1051cc and 1300cc), the pay per kilometre will increase from Sh26 (USD 0.20) to Sh36.8 (USD 0.28).
Paul King’ori, Director of Road and Railways Transport, representing Kenya’s Transport Cabinet Secretary Davis Chirchir, explained that the app owners must comply with the new AAK rates. He further noted that the government had engaged the World Bank to support drafting a National Taxi Pricing Policy, aimed at creating long-term improvements in the sector.
King’ori also emphasized that the digital taxi app owners are required to respond within seven days, detailing the steps taken to address these concerns. The companies are given this timeframe due to their global operations, which require broad consultation.
While the National Transport and Safety Authority (NTSA)’s Head of Licensing, Yahya Ahmed, confirmed that the 2023 advisory was sent to ride-hailing app owners, the policy had not been enforced due to the absence of a unified regulatory framework. Drivers are adamant that the companies must adhere to the new pricing within the given seven-day period, or they will continue their protests.
Riders, however, are wary of the price increases that may come as a result of this directive, especially in the face of rising inflation, high taxes, and unemployment in Kenya. Although the new pricing is expected to improve relations between drivers and passengers, some drivers might feel the negative impact as riders may opt for cheaper alternatives, like motorbikes or passenger buses.
