Kenyan Drivers' Demonstrations Lead to Fare Increases, Challenging the Stability of the Gig Economy

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Kenyan Drivers' Demonstrations Lead to Fare Increases, Challenging the Stability of the Gig Economy

Bitget-RWA2025/11/21 06:36

By:Bitget-RWA

- Kenyan authorities mandated a 50% fare hike for Uber and Bolt to address drivers' protests over "exploitative labor practices." - The directive, aligning with AAK guidelines, requires immediate compliance within seven days to resolve unsustainable driver earnings. - Drivers claim current fares fail to cover operational costs, leading to loan defaults and vehicle repossessions, while unions threaten legal action. - The government collaborates with the World Bank to draft a national taxi pricing policy, ai

Kenyan officials have ordered ride-hailing platforms to raise their fares by 50%

Uber

and Bolt, after ongoing demonstrations by drivers and union threats to take legal steps over what they call "unjust and exploitative working conditions." The order, delivered by the Ministry of Roads and Transport, follows fare recommendations from the Automobile Association of Kenya (AAK) and seeks to resolve persistent complaints about drivers’ inadequate incomes.

The updated rules demand immediate adherence

, giving companies a week to reply and detail how they will comply.

This move comes as digital taxi drivers across the country protest, claiming that current pricing does not cover essential expenses like fuel, car upkeep, and loan payments. Justus Mutua, who speaks for the Amalgamation of Digital Taxis Associations in Kenya, pointed out that low rates have resulted in "declining incomes, excessive working hours, missed loan payments, and more vehicles being repossessed."

The Transport Workers Union-Kenya (TAWU) had previously warned of legal action

against these companies, accusing them of consistently harming drivers’ livelihoods.

With the new fare system, per-kilometre charges will rise sharply: Small-engine cars (up to 1050cc) will now earn Sh33.1 (USD 0.25) per kilometre, up from Sh22 (USD 0.17), and medium-engine cars (1051cc–1300cc) will get Sh36.8 (USD 0.28) per kilometre, up from Sh26 (USD 0.20).

Paul King'ori, Director of Road and Railways Transport, emphasized

that the government is working with the World Bank to develop a National Taxi Pricing Policy, aiming to create a lasting regulatory system for the industry.

Kenyan Drivers' Demonstrations Lead to Fare Increases, Challenging the Stability of the Gig Economy image 0

This directive signals a new direction for Kenya’s oversight of ride-hailing companies, which have previously operated under informal arrangements. Although the AAK’s 2023 recommendations were not mandatory due to the absence of unified rules, drivers now insist that the new fares be enforced at once to avoid further disruptions.

The National Transport and Safety Authority (NTSA) confirmed

that the new policy will take effect, warning that failure to comply could extend the protests.

Passengers, on the other hand, have voiced worries about the impact of higher prices, especially given Kenya’s high inflation and joblessness. While officials argue that the changes will benefit drivers’ working conditions, some experts warn that steeper fares might push customers toward cheaper options like motorcycle taxis or public transit.

The outcome of this policy will be closely watched

as an example of how to balance gig worker protections with affordable services in a fast-changing market.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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