The Kenyan government has moved to enforce new pricing for digital taxi services, directing app companies to adopt the 2023 Automobile Association of Kenya (AAK) rate structure.
The revision will raise fares by roughly 50%, with vehicles of up to 1050cc now earning Sh33.1 per kilometre, up from Sh22, while cars between 1051cc and 1300cc will receive Sh36.8 per kilometre instead of Sh26.
According to the Ministry of Transport, the decision is aimed at ensuring drivers receive fair compensation after years of disputes with ride-hailing companies over low fares.
Officials noted that the directive is part of a broader plan to stabilise the sector, including the development of a National Taxi Pricing Policy.
Transport app operators have been instructed to provide a formal response within seven days outlining how they will comply, given that many of the companies must consult their international headquarters.
Drivers who attended the briefing described the directive as long overdue.
They shared experiences of declining income, increased working hours, and mounting financial pressure, including loan defaults and vehicle repossessions.
Some recounted how the business was once profitable—earning as much as Sh67 per kilometre in 2011—before fare cuts eroded their livelihoods.
Leaders of the Amalgamation of Digital Taxis Associations in Kenya welcomed the government’s intervention, saying it validated their long-running appeals for fairer terms.
NTSA officials added that although the AAK advisory had been issued in 2023, it was never fully implemented due to competing interests and the absence of a clear national pricing framework. They expressed confidence that the new directive would finally address these gaps and provide stability for drivers.
