The Institute of Economic Affairs (IEA-Kenya) has warned that proposed fare controls for Kenya's ride-hailing sector could push up transport costs and reduce demand for digital taxis, as drivers platforms and economists debate how to regulate the industry without hurting people who earn a living from it.
IEA head of research John Mutua called for evidence-based rules that protect drivers' earnings while keeping fares affordable, a position echoed by Uber General Manager Imran Manji and Bolt Senior General Manager Dimmy Kanyankole, who also want a balance between drivers and passengers.
President William Ruto directed the National Transport and Safety Authority and the Ministry of Transport in May 2026 to fast-track regulations setting minimum fares for ride-hailing platforms. Draft rules would require platforms to guarantee drivers a minimum payout per trip, before commissions and taxes, regardless of distance, duration, surge pricing or discounts. The ministry has not published the figure, but industry sources say consultations have pointed to Ksh400 to Ksh500 per trip, up from about Ksh220 now, which would roughly double short urban trips
Drivers say fuel, maintenance and commissions have squeezed their incomes and an Ipsos report found that 53% of ride-hailing drivers rely on platform work as their main source of income. But analysts warn that drivers could earn more per trip yet complete fewer trips overall if demand falls. A survey of 733 Nairobi respondents found that 60% of users would switch to other transport if fares rose significantly, with 44% saying they would use matatus more often.
Platforms have also pushed back. One senior executive told Business Daily the minimum compensation model is flawed and will kill demand, while Kanyankole has argued that the real pressure on drivers comes from operating costs, particularly fuel and vehicle maintenance. Experts have urged Kenya to study Tanzania's experience with fare controls introduced in 2022 before it decides.
