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

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

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. , 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."

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).

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.

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.

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.

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