Kenya's transport ministry has moved to introduce a minimum compensation threshold per trip for ride-hailing and motorcycle-taxi drivers, setting up a confrontation with the platforms that host them as fears mount over a sharp rise in passenger fares.
The ministry is in the final stages of gazetting the Draft National Transport and Safety Authority (Transport Network Company, Owners, Drivers and Passengers) (Amendment) Regulations, 2026, according to correspondence reported by Business Daily Africa.
Industry sources say the rules would nearly double the current base fare of roughly Sh220 (about $1.70).
Principal Secretary for Transport Paul King'ori wrote to the 18 licensed ride-hailing platforms operating in Kenya, giving them until 6 July to make submissions as part of the constitutionally mandated public participation process and asking the companies to propose their own rates.
Ride-hailing executives told Business Daily Africa they had stayed out of the consultation because the ministry had not disclosed its own recommended figure.
One senior industry source described the minimum compensation model as fundamentally flawed and warned it could suppress demand while ultimately hurting drivers.
Industry sources suggest the new floor could be between Sh400 and Sh500 (roughly $3.10 to $3.90) per trip, more than double the current base charge.
A copy of the draft regulations published by cabinet secretary Davis Chirchir did not include the actual compensation figures, deepening suspicion among operators that they are being asked to comment on a policy whose key numbers remain undisclosed.
Under the draft rules, transport network companies would be required to guarantee affiliated drivers and riders a minimum per-trip payout, excluding platform commissions, taxes, levies and other deductions, regardless of distance, duration, dynamic pricing or promotional discounts.
Platforms would be barred from offering discounted pricing that pushes driver pay below the mandated floor.
The proposed minimum rates would be tiered by engine capacity, with different payouts for motor vehicles between 501 cc and 1 500 cc and those above 1 500 cc, as well as separate provisions for motorcycles.
Kenya has seen rapid growth in ride-hailing since 2014, driven by a rising urban middle class with smartphone access and disposable income.
Ministry data cited by Business Daily Africa puts the number of registered drivers across all platforms at about 35 000, many of them cross-listed on multiple apps and collectively completing an estimated 175 000 trips a day nationwide.
The new pay floor forms part of a broader push by the ministry to establish a national pricing model spanning conventional and ride-hailing taxis, with the state reviewing driver and operator cost structures to determine viable fare levels and design a fare architecture covering base charges, distance- and time-based rates, minimum fares and surcharges.
The ministry says price undercutting among rival operators and persistent driver complaints about earnings that fail to cover insurance, maintenance and wear and tear justify the overhaul.
The move follows the Transport Network Companies, Owners, Drivers and Passengers Regulations, 2022, which capped commissions charged by platforms including Uber, Bolt and Little at 18%, a provision that has remained contentious.
The ministry says drivers and vehicle owners broadly support the commission cap as necessary for sustainable earnings, while platform operators argue it discourages investment and innovation and could ultimately disadvantage consumers.
The ministry says it intends to benchmark Kenya's approach against regulatory frameworks in South Africa, the European Union , the United Kingdom and Singapore as it works towards a harmonised national taxi policy covering conventional taxis, ride-hailing services, boda bodas, tuk-tuks and e-bicycles.
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