Kenyan online taxi-hailing company Faras has announced a new minimum ride cost of KES 240, following weeks of protests by local digital taxi drivers. The drivers have been vocal about their dissatisfaction with the decreasing per-kilometer rates on ride-hailing apps, despite rising fuel prices and the escalating cost of living.
In response to the drivers’ grievances, Faras has not only increased the minimum ride cost but has also adjusted its general pricing structure.
“After careful consideration, we have decided to increase all our minimum prices to KES 240 and also review our general prices upwards by a significant percentage,” said Faras General Manager Allan Maimbu during a press conference in Nairobi.
Additionally, the company has aligned its commission rates with the maximum allowable by the National Transport and Safety Authority (NTSA), which is capped at 18%. Maimbu emphasized that these changes are aimed at addressing the drivers’ concerns and creating a more sustainable environment for the industry.
“To ease the impact of the price changes, we’ll continue to offer discounts to our customers, and as always, our drivers will receive the balance for discounted trips immediately after the trip ends, directly in their wallet,” Maimbu added.
Despite the increase, some drivers, particularly those represented by the Organization of Online Drivers Kenya (OOD), have been pushing for a base fare of KES 300. However, Maimbu noted that after discussions with drivers on their platform, they reached an agreement on the new KES 240 minimum.
“We warmly invite our fellow industry players to join us in addressing the drivers’ concerns. By collaborating, we can create a fairer and more sustainable future for drivers and passengers and make Kenya a more welcoming place for the ride-hailing business,” he urged