Kenya’s ride-hailing industry may soon look very different. The government is planning to introduce a national pricing model for taxis, a move that could directly affect app-based services such as Uber and Bolt.
The proposal aims to set clear guidelines for taxi fares across the country, taking that liberty away from individual operators.
For millions of Kenyans who rely on ride-hailing apps daily, the change could influence how much they pay for a trip. For drivers, it could determine how much they actually earn.
Govt Says It’s a Plan to stabilise the taxi market
The Transport Ministry says the goal is simply to bring order to a fast-growing but often chaotic sector.
Ride-hailing services have expanded rapidly in Kenya since their arrival about a decade ago. But that growth has come with constant disputes with drivers protesting low fares, companies defending their pricing models, and regulators trying to keep up.
To address the tensions, the government plans to study the true cost of operating a taxi, including fuel, insurance, maintenance, and platform commissions. The findings would then be used to design a standard fare structure covering things like:
- Base fare
- Per-kilometre charges
- Time-based charges
- Minimum ride pricing
- Possible surcharges
The idea is to ensure drivers earn sustainable incomes while passengers still enjoy affordable rides.
Drivers have been pushing for intervention
Driver groups have long argued that ride-hailing platforms keep fares too low. With rising fuel prices, vehicle financing costs, and maintenance expenses, many say the economics simply don’t work.
In recent years, protests and strikes by drivers have become common in cities like Nairobi. Regulators have already tried to step in before with little success, for example by capping ride-hailing commissions and recommending higher fare structures. Some proposals even suggested increasing certain digital taxi rates by up to 50 percent to cushion drivers.
Now the government appears ready to go further by introducing a nationwide pricing framework.
A lesson from Tanzania
Kenya’s move comes just weeks after a dramatic development next door.
In January 2026, Uber officially pulled out of Tanzania, ending nearly a decade of operations in the country.
The exit followed years of disputes between the ride-hailing giant and regulators over fare controls, commissions, and broader regulatory oversight of the industry.
Tanzania’s transport regulator had introduced strict rules that effectively limited how ride-hailing platforms could price their services and how much commission they could charge drivers. Those controls squeezed the company’s margins and complicated its flexible pricing model, which normally relies on algorithms and surge pricing.
Eventually, Uber decided the environment was no longer tenable. On January 30, 2026, the company switched off its app in the country.
The development has become a cautionary tale across the region, raising questions about how far governments can regulate ride-hailing fares before global platforms reconsider their presence.
What this could mean for Kenya
For Kenya, the ride-hailing sector employs tens of thousands of drivers and supports a broader ecosystem that includes car financiers, insurance providers, and fuel suppliers.
A well-designed pricing model could bring stability to the industry and reduce the constant conflicts between drivers and platforms. But if the rules are too rigid, they could also disrupt how ride-hailing apps operate.
According to the Business Daily, Bolt says it is aware of the ongoing review and is ready to engage with authorities as discussions continue.
The era of completely free-market pricing for ride-hailing in Kenya may be coming to an end. It is not yet clear whether two wheelers and three wheelers will be impacted by this review.
