NAIROBI, Kenya – Uber, Bolt and Faras have opposed proposed minimum fares for ride-hailing services in Kenya, warning that mandatory price controls could increase transport costs, reduce passenger demand and ultimately lower drivers’ earnings.
The three ride-hailing companies made the submission before the National Assembly Departmental Committee on Communication, Information and Innovation as Parliament considers changes to the regulatory framework governing the sector.
The firms argued that ride-hailing fares should remain market-driven, saying higher mandatory fares could reduce the number of trips and negatively affect drivers who depend on passenger demand for their income.
“If fares rise and passenger demand falls, drivers may complete fewer trips and ultimately earn less,” the companies said in a joint memorandum.
They noted that driver earnings depend on several factors, including the number of trips completed, passenger demand, vehicle utilisation and operating costs.
Firms reject minimum fare proposal
Uber, Bolt and Faras urged Parliament to retain market-based pricing, arguing that passengers could respond to higher fares by reducing their use of ride-hailing services or turning to less reliable alternatives.
The companies said this could hurt both passengers and drivers while reducing activity across the wider ride-hailing ecosystem.
Committee Chairperson John Kiarie said MPs would assess the impact of the proposed regulations before making recommendations.
“We must ensure that whatever regulatory framework we adopt protects consumers, supports drivers, and at the same time allows innovation to thrive,” Kiarie said.
The committee is expected to consider views from ride-hailing firms, drivers and other stakeholders before deciding whether minimum fares should be introduced.
Companies want 18 per cent service fee ceiling removed
The ride-hailing firms also opposed the existing 18 per cent ceiling on service fees, arguing that the limit could restrict investment in the sector.
They said platforms need flexibility to fund passenger promotions, driver incentives, safety technology, emergency response systems, customer support and new digital products.
“Government would effectively set the minimum fare a passenger pays while simultaneously limiting the maximum revenue a platform can receive for facilitating the trip,” the companies said.
The firms noted that Kenya’s 18 per cent commission ceiling is below the global average of 25 per cent and warned that maintaining the cap could discourage investment.
They argued that regulators should instead allow competition between platforms to determine pricing and service fees.
Ride-hailing firms seek longer licences
The companies also called for operating licences to be extended from annual renewals to periods of between three and five years.
They said annual licence renewals create uncertainty for businesses and drivers, particularly in a sector where companies need to make long-term investments in technology, safety systems and infrastructure.
However, MPs questioned whether a five-year licensing period would give regulators enough flexibility to respond to rapid technological changes.
The committee suggested that an intermediate licensing period could provide a balance between regulatory flexibility and business certainty.
Firms raise concerns over overlapping regulations
Uber, Bolt and Faras further raised concerns about overlapping requirements imposed by national and county authorities.
The companies said the problem could become more complicated if the transport network company regulatory framework is expanded to cover goods transport as well as two- and three-wheeled motorcycles.
“Businesses should not be left to navigate different and sometimes overlapping regulatory requirements without a clear coordination mechanism,” Kiarie said.
The firms called for clearer coordination between national and county governments to prevent duplication and unnecessary regulatory costs.
Companies defend independent contractor model
On the status of drivers, the firms maintained that platform workers are independent contractors who have the flexibility to decide when and where they work.
They said drivers can accept or reject trips and operate across competing ride-hailing platforms.
The companies nevertheless supported stronger safeguards around driver suspension and deactivation.
They proposed distinguishing between temporary suspension, particularly where there are safety concerns, and permanent deactivation.
Drivers should also be given a reasonable opportunity to respond to allegations before permanent action is taken, the firms said.
MPs question drivers’ take-home earnings
The welfare of drivers emerged as another major issue during the committee hearings.
Committee Vice Chairperson Alfah Miruka questioned how much drivers actually take home after paying for fuel, maintenance, insurance and other operating expenses.
“We need to establish what the driver takes home after meeting all these costs. The welfare of drivers is equally significant,” Miruka said.
Nandi Hills MP Bernard Kitur proposed that Parliament invite driver representatives from different parts of the country to present their views before decisions are made.
“Before Parliament decides on minimum fares or service fees, we should hear directly from the people who drive these vehicles every day,” Kitur said.
The proposal would give Parliament an opportunity to compare the position of ride-hailing companies with the experiences of drivers operating on the platforms.
Companies highlight technology and safety
The firms also defended the role of technology in improving passenger safety.
They pointed to driver and vehicle verification, GPS tracking, emergency response systems and digital feedback mechanisms as some of the measures introduced through ride-hailing platforms.
An Uber official said passenger ratings also help identify service concerns, while the company provides customer support through dedicated teams and physical offices.
The committee questioned the companies about artificial intelligence and other emerging technologies.
The firms said their technical teams were keen to adopt new developments that could improve services and operations.
Kiarie urged ride-hailing companies to create more opportunities for women, Kenyan developers and local innovators.
He cited M-Pesa as an example of technology that developed a strong Kenyan and African identity and encouraged the industry to create similar opportunities locally.
He also commended Faras for competing in Kenya’s ride-hailing market and urged the company to ensure its brand and services serve Kenyans from different regions.
Firms warn against excessive regulation
Uber, Bolt and Faras called for proportionate, evidence-based and technology-neutral regulation.
They warned that excessive regulation could discourage investment, limit innovation and reduce competition in the sector.
The companies proposed that an independent Regulatory Impact Assessment should be conducted before major pricing changes are introduced.
They also argued that policymakers should assess the potential effects of minimum fares and service-fee restrictions on passengers, drivers, businesses and investment.
Ride-hailing supports wider economy
The companies said ride-hailing has created tens of thousands of flexible earning opportunities while supporting businesses across the wider economy.
The sector generates demand for vehicle financing, insurance, fuel, maintenance services, digital payments, tourism and hospitality.
They urged Parliament to develop regulations that protect passengers and drivers without undermining affordability, competition and innovation.
The National Assembly committee has directed the companies to submit revised memoranda.
It will also consider views from drivers and other stakeholders before making recommendations on proposed minimum fares, service fees, licensing periods and the wider regulatory framework governing ride-hailing services in Kenya.
