Kenya is preparing to introduce new regulations for digital ride hailing platforms as the government seeks to improve driver earnings and strengthen oversight of the rapidly growing sector. The proposed rules, developed by the Ministry of Roads and Transport through the National Transport and Safety Authority (NTSA), would require ride-hailing companies to guarantee drivers a minimum payment for every completed trip. If approved, the regulations will apply to licensed digital taxi and motorcycle platforms operating across the country and could reshape how fares are structured.
According to a Business Daily report, the Ministry has released the Draft National Transport and Safety Authority (Transport Network Company, Owners, Drivers and Passengers) (Amendment) Regulations, 2026 for public participation before they are gazetted. The proposed regulations apply to the 18 licensed ride-hailing platforms operating in Kenya and introduce a minimum compensation framework for drivers and riders.
Under the draft regulations, every transport network company would be required to ensure that affiliated drivers receive a minimum payment for each completed trip before deductions such as platform commissions, taxes and levies. The proposed rules state that this minimum compensation would apply regardless of trip distance, travel time, promotional discounts or dynamic pricing. However, the government has not yet published the specific minimum compensation rates that will apply across the different vehicle categories.
The proposed reforms are intended to address longstanding concerns over driver earnings within Kenya’s digital transport industry. According to the Ministry, approximately 35,000 drivers are registered on ride-hailing platforms across the country, collectively completing about 175,000 trips every day. Despite the continued growth in demand for app-based transport services, many drivers have argued that rising fuel prices, vehicle maintenance costs and platform commissions have significantly reduced their daily earnings.
The proposals have generated mixed reactions across the industry. Supporters argue that introducing a minimum compensation framework could improve driver welfare and create more predictable earnings. However, some ride-hailing companies have raised concerns that mandatory pricing requirements could reduce passenger demand if fares become less competitive. Industry stakeholders have also questioned the absence of publicly disclosed minimum compensation rates during the consultation process, noting that it remains difficult to assess the full financial impact of the proposed regulations.
Beyond driver compensation, the draft regulations form part of a broader government effort to strengthen the regulatory framework governing Kenya’s digital transport sector. The Ministry is also reviewing fare structures, pricing transparency and operational standards with the aim of balancing consumer affordability, driver welfare and sustainable competition among transport network companies.
Overall, the proposed regulations represent an important step toward formalizing Kenya’s ride-hailing industry. By introducing minimum compensation requirements and strengthening regulatory oversight, the government aims to improve working conditions for drivers while creating a more structured operating environment for digital transport platforms. The final impact on drivers, passengers and operators will depend on the regulations that are ultimately adopted following the completion of the public participation process.
