The government is in the final stages of introducing a minimum fare framework for taxis, barely two months after President William Ruto directed regulators to establish a new pricing model for digital ride-hailing services.

🇰🇪 Breaking It Down

However, the draft regulations published by Transport Cabinet Secretary Davis Chirchir do not specify the actual minimum compensation rates, raising questions over how much passengers could eventually pay.

The Draft National Transport and Safety Authority (Transport Network Company, Owners, Drivers and Passengers) (Amendment) Regulations 2026 proposes a new national pricing model for conventional and app-based taxis.

Under the proposed rules, regulators will review driver and operator costs to determine minimum viable fares and develop a structure covering base fares, distance charges, time rates, minimum trip charges and additional surcharges.

📌 What You Need to Know

The regulations also require transport network companies to guarantee drivers and motorcycle riders a minimum compensation per trip, separate from platform commissions, taxes, levies, fees and other deductions.

"The prescribed minimum trip compensation shall apply irrespective of distance, duration, dynamic pricing, promotional discounts or any other pricing mechanism," the draft regulations state.

The rules further prohibit transport companies from offering discounts or promotions that would result in drivers receiving payments below the set minimum compensation.

Kenyans.co.ke understands the government is considering raising the minimum fare for digital taxi rides from the current average of about Ksh220 to between Ksh400 and Ksh500.

The proposed increase could significantly affect passengers who rely on ride-hailing services, with concerns that higher fares could reduce demand for digital taxis.

Currently, some ride-hailing companies charge a minimum fare of about Ksh300 in Nairobi, with additional charges of about Ksh42 per kilometre, Ksh3 per minute and a base fare of Ksh100. Other platforms have maintained minimum charges of about Ksh240.

📰 Source: Kenyans.co.ke