Kenya’s Plan To Double Ride-Hailing Fares Sparks Standoff With Uber And Bolt

Kenya wants ride-hailing drivers to earn more per trip. The government is proposing a minimum fare that could more than double what passengers currently pay. The platforms say that will kill demand.

The Ministry of Roads and Transport has published draft regulations that would require Uber, Bolt and other ride-hailing companies to guarantee drivers a minimum payment for every trip before commissions, taxes and other deductions are applied.

While the government has not disclosed the proposed figures, industry sources say consultations have pointed to a minimum of between KES 400.00 and KES 500.00 (USD 3.10 to USD 3.90) per trip, up from the current base fare of about KES 220.00 (USD 1.70).

The regulations would apply regardless of distance, duration, dynamic pricing or promotional discounts. Platforms would be barred from offering discounted pricing that pushes driver pay below the mandated floor. The proposed minimum rates would be tiered by engine capacity, with different payouts for motor vehicles between 501cc and 1,500cc and those above 1,500cc.

The 18 licensed ride-hailing platforms were given a July 6 deadline to submit their views as part of a public participation process. Several firms reportedly refused to participate, arguing that the government had withheld the proposed rates and that the new pricing model would reduce demand.

“The minimum compensation model being fronted by the State is flawed and will kill demand and harm the drivers,” a senior executive of one of the ride-hailing platforms told Business Daily.

“The present base charge on fare is about KES 220.00, and the State’s move would see this rise significantly. They have declined to make an official disclosure of the rate, though word is that it may be set at between KES 400.00 and KES 500.00. This would be disruptive because very few passengers would afford it, and the demand side of the equation will suffer heavily.”

The government has defended the move as a response to years of driver complaints about earnings that fail to cover insurance, maintenance and wear and tear. In May, President William Ruto directed the National Transport and Safety Authority to fast-track minimum fare regulations following concerns raised by drivers over declining earnings. “We need urgent regulations that have already been developed,” the President said.

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Driver earnings have been squeezed by rising fuel costs, insurance premiums and maintenance expenses. An Ipsos report released in March 2026 found that Kenya’s digital ride-hailing and logistics ecosystem is valued at approximately KES 132 B (USD 1.02 B), supporting over 1.5 million participants nationwide. The average ride-hailing driver earns about KES 63 K (USD 488.00) per month before expenses. After deducting fuel, maintenance and platform commissions, net earnings are considerably lower.

But experts warn that sharply higher fares could backfire. Digital economy entrepreneur Moses Kemibaro noted that a move from KES 220.00 to KES 500.00 would represent an increase of about 127%.

“That is not a routine fare adjustment. It is a major intervention in one of Kenya’s most important digital marketplaces.” He argued that the debate should focus not on how much drivers earn per trip but on how many trips they can complete. “Ultimately, the passenger is the source of the revenue everyone else is trying to divide.”

The ministry has invited stakeholders and the public to submit comments on the draft regulations by July 30. It will then review the feedback before deciding whether to gazette and implement the new rules.

The move follows the Transport Network Companies, Owners, Drivers and Passengers Regulations, 2022, which capped platform commissions at 18%. The government says it intends to benchmark Kenya’s approach against regulatory frameworks in South Africa, the European Union, the United Kingdom and Singapore.

The question is whether higher fares will translate into higher driver earnings, or whether passengers will simply switch to matatus, boda bodas and tuk-tuks. Kenya has about 35,000 registered ride-hailing drivers completing roughly 175,000 trips daily. If demand falls, drivers could end up completing fewer trips despite earning more per ride. That is not a trade-off anyone asked for.