NAIROBI, Kenya, June 22 – Before the introduction of ride-hailing platforms in Kenya, many drivers depended largely on referrals, personal networks and waiting at taxi stages or designated pickup points to find customers.
While drivers could negotiate fares directly with passengers, sometimes securing lucrative trips, business was often unpredictable. Some drivers could go for days without getting a customer, while others would make only one trip in an entire day.
The arrival of ride-hailing platforms such as Uber and Bolt transformed the sector by connecting drivers to customers through mobile applications. With the convenience of booking rides at the touch of a button and relatively affordable fares, the platforms quickly gained popularity among Kenyan commuters.
For drivers, the apps initially appeared to offer a more reliable source of income through increased customer access and reduced downtime.
However, as the sector matured, concerns began to emerge. Drivers increasingly complained that earnings were being squeezed by low fares, rising fuel costs and growing competition from a rapidly expanding pool of drivers.
Jonas Barasa, a Bolt driver who owns a 1300cc Toyota Vitz, says the economics of the business have changed significantly since he joined the platform.
According to Barasa, the cost of running his vehicle has risen sharply due to increases in fuel prices, while fares have not increased at the same pace.
He says that fully fueling his car now costs about Sh1,000 more than it did previously, increasing his daily operating expenses at a time when earnings are under pressure.
Although customer demand remains relatively stable, Barasa argues that drivers are shouldering a larger share of the rising costs.
“Before, the online taxi business was good, but now it is a shadow of its former self because of low fares and the increasing number of drivers competing for the same customers,” he says.
Bolt East Africa Rides Senior General Manager Dimmy Kanyankole, however, maintains that the company’s pricing model is designed to balance affordability for riders with sustainable earnings for drivers.
According to Kanyankole, fares are calculated based on distance, estimated travel time, traffic conditions and real-time demand and supply dynamics.
He notes that drivers are shown the fare, pickup point and destination before accepting a trip, allowing them to make informed decisions.
“Once the trip is complete, both drivers and passengers can see the final fare and a full breakdown in their respective apps. Our fares are competitive across all categories and benchmarked against industry and market standards in each city we operate,” Kanyankole says.
Since April 2026, Bolt says it has adjusted fares twice to cushion both drivers and passengers from the impact of rising fuel prices.
In May, the company increased fares by six percent, citing surging fuel costs that were affecting drivers’ profitability.
Kenya, like many countries, has faced volatility in fuel prices following geopolitical tensions in the Middle East that disrupted global oil supply chains. The impact has been felt directly by transport operators, including ride-hailing drivers whose businesses depend heavily on fuel costs.
Kanyankole says the company also considers broader earnings potential rather than focusing solely on individual trip rates.
“Our minimum fare is an industry-standard floor built on a clear set of pricing parameters including base fare, distance, time and estimated trip cost. It applies from the very start of a trip, so even a very short journey guarantees the driver a viable earning,” he explains.
“Beyond the per-trip rate, we look at the full picture: trip quantity, potential daily earnings and net earnings after costs. Our goal is to ensure that a dedicated active driver running this as a primary business earns enough to keep their operations profitable and sustainable.”
For some drivers, however, the challenge extends beyond fuel costs.
David Murithi, who drives on the Uber platform, says customer numbers have declined compared to previous years, making it harder to earn a stable income.
He attributes this partly to difficult economic conditions and increased competition from other transport options, particularly motorcycle taxis.
“Unlike before, there were not too many boda bodas on the apps. Nowadays they are everywhere. I suspect many customers have shifted because they are cheaper and more convenient, especially in heavy traffic,” he says.
Murithi says drivers have repeatedly asked ride-hailing companies to review fares but feel their concerns have not been adequately addressed.
He also argues that the pressure to earn enough income forces many drivers to work long hours, often at the expense of their health and wellbeing.
“Supporting drivers remains a key priority for Uber,” a company spokesperson told Capital FM.
The company says it provides multiple channels through which drivers can raise concerns, including in-app support systems and engagement forums.
Uber also points to several initiatives aimed at reducing operating costs for drivers. These include fuel discounts through partnerships with TotalEnergies, vehicle maintenance support from AutoXpress and Kingsway Motors, free annual vehicle inspections, discounted servicing and spare parts, as well as eye screening programmes offered in partnership with VisionSpring.
“Beyond trip earnings, we continue to support initiatives that help drivers reduce operating costs and support their overall well-being,” the spokesperson said.
Wilfred Wagila, another ride-hailing driver, says conditions have become particularly difficult following recent fuel price increases.
While he acknowledges that the business was already becoming more challenging before fuel costs rose sharply, he says the latest increases have further squeezed drivers’ margins.
“Business was not perfect before, but it was manageable when petrol was selling at around Sh176 per litre,” he says.
“Now I am paying about Sh214 per litre for the same fuel, yet the fare charged to customers has largely remained the same.”
His experience reflects a wider concern among drivers who believe that while ride-hailing platforms have made transportation more accessible and convenient for passengers, the economic benefits for drivers are gradually diminishing.
The debate highlights the difficult balancing act facing ride-hailing companies as they seek to maintain affordable prices for consumers while ensuring drivers earn enough to sustain their businesses in an increasingly competitive and costly operating environment.
