Kenya’s ride-hailing industry is facing another major regulatory shift after the Ministry of Roads and Transport proposed new rules that would introduce a mandatory minimum compensation per trip for taxi and motorcycle drivers. The move is expected to improve driver earnings but has already sparked resistance from ride-hailing platforms concerned about higher passenger fares.
According to official correspondence from the Ministry, the proposed regulations are in the final stages before gazettement. The Ministry of Roads and Transport, through Principal Secretary for Transport Paul King’ori, directed all 18 licensed ride-hailing platforms to participate in public consultations and submit their proposals for minimum driver compensation by July 6.
The draft amendments seek to establish a guaranteed minimum payment for every completed trip, regardless of the platform involved. Industry insiders indicate that the proposed framework could almost double the current base fare, which currently averages around Kshs 220 for many urban rides.
However, the consultation process has already encountered resistance. Several ride-hailing firms reportedly declined to submit proposals, arguing that the government had not disclosed the benchmark compensation rate it intends to adopt. Without knowing the proposed minimum, operators say meaningful participation in the consultation process is difficult.
The proposed reforms are part of broader efforts to regulate Kenya’s rapidly growing digital transport sector. Ride-hailing drivers have for years complained about declining earnings caused by aggressive fare competition, frequent promotions, and commission structures imposed by platforms. Driver associations have consistently pushed for stronger government intervention to guarantee fair compensation and sustainable working conditions.
For consumers, the regulations could translate into noticeably higher transport costs if operators pass the additional expenses on to passengers. While higher fares may improve driver welfare, they could also reduce demand for ride-hailing services, particularly among price-sensitive commuters who have increasingly relied on digital taxi platforms for affordable transport.
The outcome of the proposed regulations will likely determine the future balance between protecting driver incomes, maintaining affordable transport services, and preserving competition among ride-hailing companies. As the government moves closer to gazeting the new rules, industry stakeholders will be watching closely to see whether a compromise can be reached that supports both drivers and consumers without significantly disrupting Kenya’s growing digital mobility sector.
