Uber Says It Helps Kenyan Drivers Make ~USD 17 M Yearly, But Disputes Linger

Uber’s 2023 Economic Impact Report for Kenya paints a compelling picture of the platform’s contribution to the country’s economy. The company claims it empowers its Kenyan drivers and delivery partners to earn an additional KES 2.2 B (~USD 17 M) annually, representing a 37% increase compared to their next-best alternative. Yet, behind these promising figures, tension simmers, as many drivers have long argued they still struggle to make ends meet amid rising costs and low fares.

Uber, which has operated in Kenya since 2015, presents its report as a testament to its role in enabling flexible work, boosting local businesses, and supporting the tourism sector.

The report states that drivers and delivery partners also derive KES 1.6 B (~USD 12 M) in value from the flexibility the app provides. For restaurants, Uber Eats reportedly created KES 534 M (~USD 4 M) in additional value by facilitating deliveries, while the app itself generated KES 2.7 B (~USD 20 M) for Kenya’s tourism industry in 2023.

The report highlights the app’s broader societal impact, noting that 95% of riders value the convenience it offers, and 79% see it as a safe nighttime travel option. Uber positions itself as a vital part of Kenya’s growing digital economy.

But on the streets of Nairobi and other Kenyan cities, there have been reports of drivers telling a different story. Rising fuel costs, high commissions, and stagnant fares have led to discontent and protests. Earlier this year, a union of gig workers, the Organization of Online Drivers (OOD), took matters into its own hands, circulating a rate card that sets fares at least 50% higher than Uber’s.

A Strained Relationship

The OOD defends the move as a peaceful pushback against Uber’s pricing model. “We tried to talk to Uber about adjusting the prices, but it was in vain,” said Justin Nyaga, OOD’s chairperson. “So we decided to take matters into our own hands to provoke them into discussing our terms and conditions.”

Uber, however, maintains that charging above the app’s estimated fares is against its guidelines. “We encourage all riders to report such instances,” said Imran Manji, Uber’s head of East and South Africa. “We are currently reviewing the incidents reported to us.” Uber eventually raised its fares in August in response to pressures.

This standoff is not new. In October 2022, Uber reduced its commission in Kenya from 25% to 18% after drivers protested low earnings. Yet, drivers argue that the adjustment was insufficient to offset the rising costs of fuel, insurance, and vehicle maintenance.

Since Uber entered the Kenyan market, fuel prices have nearly doubled, exacerbated by the government’s removal and partial reinstatement of fuel subsidies. In May 2023, drivers staged a five-day protest demanding higher fares and lower commissions from Uber and rival platforms like Bolt.

Global Challenges, Local Context

Uber’s challenges in Kenya echo similar issues worldwide. The 2023 Fairwork report highlighted that drivers globally often struggle with low earnings, despite the flexibility such platforms offer. In Kenya, where digital technologies are integral to economic transformation under the Vision 2030 plan, ride-hailing platforms like Uber hold significant promise—but also face heightened scrutiny.

Mark Graham, director of Fairwork, notes, “At the end of the day, these drivers need to cover the costs of their vehicles, fuel, and insurance. They often have families to support and are frequently the primary breadwinners.”

While Uber argues it frequently adjusts prices to balance affordability for riders with fair earnings for drivers, some drivers remain unconvinced. The August 2024 fare increase, according to Uber, was implemented after reviewing market conditions and driver feedback. But drivers say it hasn’t done enough to address their financial realities.

Despite these disputes, Uber’s report underscores its positive impact on Kenya’s economy, contributing an estimated KES 4.1 B (~USD 31.6 M) in 2023. The company also emphasises safety, with 71% of riders agreeing that the app reduces reckless driving.

Yet, the growing rift with drivers raises questions about the sustainability of Uber’s business model in Kenya and debates about whether the platform continue to scale while addressing the legitimate concerns of its workforce.

For now, the period earlier this year, when laminated rate cards were a fixture on dashboards of Nairobi’s Uber drivers, is a quiet but powerful reminder of the discontent bubbling beneath the surface of Uber’s operations in Kenya. Whether through negotiation or protest, drivers are determined to secure a larger share of the economic pie they help to bake.