NAIROBI, Kenya – Digital taxi drivers in Kenya are set to benefit from a major fare hike after the government directed ride-hailing apps to adopt recommended pricing rates, a move hailed as a victory for drivers struggling with low earnings.
The Ministry of Transport issued the directive following years of tension between drivers and app companies over rates considered too low to sustain livelihoods.
The move enforces the pricing guidelines issued by the Automobile Association of Kenya (AAK) in 2023.
Under the revised structure, vehicles with engines up to 1050cc will now earn Sh33.1 per kilometre, up from Sh22, while cars with engines between 1051cc and 1300cc will earn Sh36.8, compared to Sh26 previously. This represents roughly a 50 P.C. increase in fares.
Speaking at the Ministry offices in Nairobi, Paul King’ori, Director for Road and Railways Transport, delivering remarks on behalf of Transport Cabinet Secretary Davis Chirchir, said app owners have seven days to comply.
“The first directive is that app owners must use the AAK rates. We have also communicated with the World Bank to engage a consultancy to draft a National Taxi Pricing Policy as a long-term solution. Let us be patient,” he said.
Drivers welcomed the move as overdue relief after years of declining earnings and mounting operational challenges.
“In 2011, I was earning as much as Sh5,000 per day and even bought three more taxis. Today, the business is so tough that I had to sell the extra vehicles because my drivers could not make enough to cover costs,” said Justus Mutua, spokesperson for the Amalgamation of Digital Taxis Associations in Kenya.
Justin Nyagah, chairperson of the association, described the directive as “a reason for celebration” and a key step toward fairer terms for drivers.
Yahya Ahmed, NTSA Head of Licensing for Transport Network Companies, added that the 2023 advisory had never been formally enforced due to the lack of a national pricing policy and conflicting interests.
Drivers warned that protests could resume if app companies fail to implement the rates within seven days.
