Gov’t Orders Digital Taxi Apps to Hike Fares by 50P.C. for Drivers
Digital taxi drivers across Kenya are set to benefit from a significant fare increase after the government directed ride-hailing platforms to adopt officially recommended pricing rates, marking a major victory for drivers struggling with dwindling incomes.
The Ministry of Transport issued the directive following years of disputes between drivers and app companies over fares deemed insufficient to sustain livelihoods. The new mandate enforces pricing guidelines issued by the Automobile Association of Kenya (AAK) in 2023, which had not been previously implemented.
Under the revised structure, vehicles with engines up to 1,050cc will now earn Sh33.10 per kilometre, up from Sh22.00, while cars with engines between 1,051cc and 1,300cc will earn Sh36.80 per kilometre, compared to Sh26 previously – representing roughly a 50 percent 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, outlined the government’s plan and compliance timeline.
“The first directive is that app owners must adopt the AAK rates. We have also engaged the World Bank to consult on drafting a National Taxi Pricing Policy as a long-term solution. Let us be patient as we ensure a sustainable framework for drivers,” Mr King’ori said.
Drivers welcomed the move as overdue relief after years of declining earnings and 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 government directive as “a reason for celebration” and a key step toward establishing fairer terms for drivers.
Yahya Ahmed, Head of Licensing for Transport Network Companies at the National Transport and Safety Authority (NTSA), noted that the 2023 advisory had never been formally enforced due to the absence of a national pricing policy and conflicting stakeholder interests.
Drivers have warned that protests could resume if app companies fail to implement the new rates within seven days, highlighting the urgency of compliance.
The directive is seen as a critical milestone in stabilising Kenya’s digital taxi industry, offering drivers a chance to regain financial viability while paving the way for a broader, government-regulated taxi pricing framework.
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Gov’t Orders Digital Taxi Apps to Hike Fares by 50P.C. for Drivers