Kenya now wants to take direct control of how taxi fares get set across both street taxis and app-based rides. The Ministry of Roads and Transport plans to implement a national pricing model that uses a single clear formula, rather than leaving pricing entirely to each platform’s algorithm. The move targets long-running fights over low driver earnings, heavy discounts, and price undercutting between rival apps.
The ministry says it will deploy a national pricing model for conventional taxis and ride-hailing services. A published work plan shows the government will review real costs that drivers and owners face, then use those costs to define minimum viable fares. That decision brings pricing closer to a regulated public transport style system, even though apps still run the booking, matching, and payments.
The ministry links the plan to a clear gap in policy. It says Kenya lacks a national taxi policy, and that gap leaves room for disputes, unstable market dynamics, and inconsistent enforcement. It also points to opaque pricing formulas that riders and drivers struggle to understand, especially during discounts and peak hour pricing.
The fare model focuses on the basics that shape every trip
The work plan described by the ministry centres on a fare structure with standard parts. It includes a base fare, distance rates, time rates, a minimum fare, and surcharges. This structure mirrors how many regulated taxi systems quote prices, because it separates the fixed cost of starting a trip from the cost of distance and traffic time.
That matters in cities like Nairobi where traffic often turns short trips into long ones. When pricing lacks a clear time component, drivers feel the loss most in gridlock. When riders see only a final figure without a simple breakdown, they also struggle to judge fairness. The ministry says it wants a harmonised framework that supports affordability while still giving drivers and owners fair returns.
Kenya links fare controls to low driver earnings and price undercutting
The ministry says aggressive price competition has pushed fares down and triggered constant fights. Drivers often complain that earnings fail to cover insurance, maintenance, and vehicle wear and tear. Operators and drivers also argue over how platforms calculate prices and commissions. Riders then face sudden swings in pricing based on promotions, algorithm changes, and competitive discounting.
The ministry also describes the scale of the market it wants to stabilise. It puts Kenya’s ride-hailing driver count at about 35,000 enrolled across platforms, with many drivers listed on more than one app. It also estimates about 175,000 trips per day across all network companies nationwide. Those numbers show why even small pricing changes ripple across daily transport budgets and household incomes.
What riders will likely see once Kenya enforces a pricing model
A state-backed pricing formula usually reduces extreme price swings. It also limits how far promotions can push prices down, since a regulated minimum fare and set distance and time rates create a floor. That can improve reliability, because drivers stop rejecting trips that pay too little. The ministry says it wants to balance affordability with fair returns, so it clearly expects riders to stay in the system while drivers earn enough to keep cars on the road.
Techpoint Africa also notes that a national pricing model would require companies like Uber and Bolt to follow state-approved fares instead of fully platform-controlled pricing. It adds that riders may see higher fares, while drivers get more predictable income per trip, especially after repeated protests tied to low pay and rising running costs.
What Uber and Bolt will need to change inside their apps
A regulated pricing model forces platforms to adjust how they compute the final fare. Platforms will still match riders to drivers and manage payments, but the pricing engine must align with the national formula. That includes the minimum fare, time charges in traffic, and any approved surcharges. The plan can force firms to adjust their algorithms to align with government-approved rates.
Bolt has already acknowledged the ongoing review. It remains committed to constructive engagement with authorities, while also saying it is premature to comment on specific proposals during active discussions. That response signals that regulators and platforms already sit at the table, even before Kenya finalises the national model.
The next steps Kenya has already put on the record
The ministry says it plans to benchmark other jurisdictions, including South Africa, the EU, the UK, and Singapore, as it builds a coherent framework. It also says it will review existing taxi policy and regulations that cover other services, such as boda boda, tuk-tuk, and e-bicycles. That wider review matters because Kenya’s daily transport market blends many modes that compete for the same riders and the same road space.
In parallel, the ministry has already used the AAK-recommended rates as an immediate lever, and it has asked app companies to respond within seven days on actions taken. It has also pointed to World Bank-supported consultancy work as part of the long-term national pricing policy process. These steps show that the ministry wants action in weeks, not in years.
