Leading ride-hailing companies, Uber and Bolt, have been directed by Kenyan transport authorities to implement a significant 50 per cent increase in ride fares. This mandate comes from Kenya’s Ministry for Roads and Transport, which has ordered these companies to immediately adopt the pricing guidelines previously suggested by the Automobile Association of Kenya (AAK).

Under the newly enforced AAK guidelines, per-kilometre rates are set to increase by approximately 50 per cent across various engine categories. Specifically, for vehicles with small engines (1050cc), the per-kilometre fare will rise from Sh22 to Sh33.1, marking a 50.4 per cent increment. For medium-sized engines (between 1051cc and 1300cc), the per-kilometre fare will see an increase from Sh26 to Sh36.8, representing a 41.5 per cent jump.

Yahya Ahmed, Head of Licensing at the National Transport and Safety Authority (NTSA), clarified that these increases are not entirely new, as AAK’s guidelines have been communicated to ride-hailing companies since 2023. However, enforcement was previously hindered by the absence of a unified regulatory framework. Paul King’ori, Director of Road and Railways Transport, acting on behalf of Kenya’s Transport Cabinet Secretary, Davis Chirchir, issued a stern warning to Uber and Bolt, urging them to adjust to the new AAK rates. He also stipulated a seven-day period for the companies to submit detailed procedures outlining their adoption of the new pricing structure.

This development is a culmination of protracted agitations by Kenyan e-hailing drivers, who have consistently campaigned for improved fares and better overall welfare from app companies, particularly Uber and Bolt. In July 2024, drivers staged protests highlighting issues such as high commissions, unfavourable fares, and the failure of authorities to compel companies to honour a legally stipulated minimum fare of 300 Kenyan shillings (Ksh) per trip.

A driver underscored the precarious situation created by the lack of enforcement, stating that drivers were left with very little income after accounting for fuel costs and the substantial commissions taken by platforms like Uber and Bolt. Faced with these challenges, drivers had even threatened to resort to bidding for trips offline, thereby bypassing the app companies' price determination mechanisms.

Following these protests, Bolt announced a 10 per cent fare increase on its app a month later. This adjustment raised the base fare for Bolt’s Economy category from 200 to 220 Kenyan shillings (Ksh). Linda Ndungu, Bolt’s General Manager for Rides, explained at the time that the increase aimed to provide fair compensation and enhance working conditions for driver-partners. Despite this, drivers felt the increase was insufficient and fell short of what they considered fair and just compensation.

Consequently, the Transport Workers Union of Kenya (TAWU Kenya) escalated the matter, announcing its intent to file a petition against Uber and Bolt. The union accused the companies of unfair, exploitative, and unlawful digital labour practices that allegedly violate drivers’ constitutional rights. Nicholas Ogolla, the General Secretary of TAWU Kenya, stated that Uber and Bolt continue to infringe upon drivers' rights by deducting commissions exceeding the legally mandated 18 per cent cap under the Digital Hailing Regulations of 2022. He further criticized the companies for unilaterally controlling pricing, reducing driver earnings, and deactivating driver accounts without due process. Ogolla argued that labeling drivers as "independent contractors" while controlling every aspect of their work—including pricing, penalties, and deactivation—constituted exploitation rather than independence.

For drivers, the current order enforcing the 50 per cent fare increase is seen as a hard-won victory after persistent struggles. However, their activism is far from over. Drivers have issued a new threat: if Uber and Bolt fail to adjust to the new pricing within the stipulated seven-day period, renewed protests will ensue.

While this development is certainly a positive step for drivers, its implications for passengers are less straightforward, especially given Kenya's challenging economic climate. Moreover, a critical underlying issue—the companies' commission rates—remains unaddressed. Both Uber and Bolt are reportedly still extracting commissions above the 18 per cent recommended by law. The current fare adjustments primarily shift financial burden between drivers and passengers, without requiring app companies to make any significant sacrifice. TAWU Kenya and driver advocates argue that a reduction in commissions is the only genuine way for app companies to demonstrate commitment to balancing the satisfaction of both drivers and passengers.