Kenya to launch National Taxi Pricing Policy that will set a mandatory fare formula for every ride

For years, Nairobi’s streets were the front lines of a quiet war between local drivers and global giants. Before the 2022 Digital Taxi Regulations took hold, platforms like Uber and Bolt frequently claimed a quarter of every fare. When you factor in the soaring cost of fuel and high-interest car loans, many drivers were essentially paying for the privilege of working. You and I know that this isn't a side hustle; for over 53% of drivers, it is the primary income that keeps their families afloat.

While the 18% cap (officially gazetted on June 20, 2022) is the lowest mandatory ceiling in Africa’s major markets, the victory remains fragile. This year, the battle has moved from the headline commission to the hidden math of the apps. Driver associations, such as the Amalgamation of Digital Taxis Associations (ADTA), continue to flag opaque booking fees and incentive clawbacks that effectively eat into that 18% margin.

In response, the Kenyan government is now moving toward a National Taxi Pricing Policy, with a formal work plan launched in March 2026. This follows a major November 2025 directive from the Ministry of Transport that ordered apps to immediately adopt Automobile Association (AA) rates, effectively mandating a 50% increase in per-kilometer fares to end the aggressive price wars that have historically squeezed driver earnings to the bone.

The Profitability of Going Green Because platforms can no longer hike their commissions to boost margins, they have been forced to focus on lowering the driver's operating costs instead. This has triggered a massive, pragmatic push toward electric vehicles (EVs).

The MojaEV Handover: In November 2025, we saw a landmark event where MojaEV handed over 30 Neta V electric taxis in a single day—the largest release of its kind in Kenya. These vehicles are designed specifically to handle the "Nairobi grind" while slashing daily overhead.

Business, Not Activism: For a Nairobi driver, switching to an electric motorcycle or car from a player like Spiro isn't an environmental crusade. It is a cold business calculation. In a world where commissions are fixed, reducing fuel and maintenance costs is the only reliable way to increase take-home pay.

Sticky Infrastructure: By partnering with lenders like Caritas Microfinance Bank and M-Kopa, platforms are building a "sticky" relationship with drivers, providing the asset financing that traditional banks still refuse to offer.

A New Financial Identity The most significant downstream effect is the formalization of what was once a ghost economy. Because almost all earnings flow through M-Pesa, drivers are building a verified transaction history for the first time. This digital paper trail is acting as a bridge to formal financial services—micro-loans, insurance, and savings—that were previously out of reach.

Kenya’s model suggests that you don’t have to kill the gig economy to protect the worker. You just have to force the platforms to stop being middle-men and start being infrastructure providers. For other regulators in the rest of Africa, Nairobi should serve as a blueprint for the future of African labor.

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