By Phillip Orwa
The Kenyan government is moving to standardize fares for digital taxi operators that include Little Cab, Yego, Weego, Faras, Uber and Bolt by implementing a new national pricing model to address low driver earnings and disputes over fair compensation.
Last year, drivers through the Amalgamation of Online Drivers brought together drivers who ply the online trade, including the Organisation of Online Drivers (OOD) and the United Organisation of Drivers (UOD), in a strike to help force the applications to increase the prices.
Late last year, digital taxi drivers in Kenya met with Ministry of Transport (Kenya) officials and National Transport and Safety Authority (NTSA) representatives to seek a hearing over a strike they had conducted over low earnings, high commissions, and rising operational costs.
The strike, often referred to as a “digital blackout,” involved drivers shutting off apps from services like Uber, Bolt and Faras.
During the discussions then, representatives of the digital taxi drivers and ministry officials resolved that the applications should be guided by the AA rates, but to date the rates are yet to be implemented.
Justin Nyaga, the Chairman of the Organisation of Online Drivers, welcomed the government’s new move and said that they are still awaiting the apps’ response after they were ordered by the government to implement the AA rates, which they are yet to implement to date.
“We held several meetings and expected that the apps would adhere to the government order that they implement the AA Rates,” said Nyaga in one of the meetings with the members.
Brian Munyendo, one of the drivers operating under the OOD fraternity, then said “Drivers operating the digital apps were just demanding standard rates where payments do not drop below a specific minimum price, the current rates are uneconomical and do not cover fuel, maintenance, and app fees.”
And after a long struggle from the digital drivers, the Ministry of Transport is now reportedly set to develop a mandatory taxi pricing policy to address the complaints of predatory fares.
Meetings have included representatives from companies like Uber, Bolt and Little Cab, with discussions aimed at revising the current commission structures.
The Ministry of Transport, driven by complaints of unfair labour practices and protests from driver associations, is currently setting a minimum fare structure.
The government has mandated the adoption of rates approved by the Automobile Association of Kenya (AAK), which include a base rate of KSh 33 per kilometre.
Total cost per kilometre is expected to be approximately Sh39, accounting for platform commission and a per-minute driver salary component, particularly for vehicles with engine capacities not exceeding 1,000cc.
Drivers have been pushing for a minimum fare of Sh300 to ensure profitability.
The state has previously directed that commissions paid by drivers to the platforms be capped, moving to regulate them at 18 per cent per trip, down from higher rates, to ensure drivers maintain a reasonable take-home pay.
The Transport ministry is reviewing driver and operator cost structures to ensure that pricing covers key expenses like fuel, insurance, and vehicle maintenance.
