Ride-hailing operators in Nairobi have proposed a major review of transport fares in a move that would likely make transport in Nairobi more expensive, especially for those using ride-hailing apps.

🇰🇪 Breaking It Down

In an advisory issued by the Ehailers Transport Operators Umbrella Association, the operators said their move to propose a fare increase came after the government increased fuel prices, adding that taxes and maintenance costs are pushing many drivers into financial distress already.

According to the operators, they are absorbing a 100 per cent fuel price increase, making many drivers struggle with shrinking earnings, while some are reportedly losing their vehicles after failing to meet loan repayment obligations.

“Transport Service Providers are absorbing 100 per cent of the fuel price increase, adding commissions, tax, maintenance, insurance, and miscellaneous expenses, and have reported shrinking net earnings,” the association stated.

📌 What You Need to Know

The operators add that fuel now accounts for at least 55 per cent of total operating costs in the road transport sector, prompting calls for a sustainable fare increase of up to 16 per cent for ride-hailing services.

In their proposals, passengers in vehicles below 1050cc would now pay a minimum fare of Ksh380 for a distance of up to 3 kilometres.

Those using vehicles between 1050 and 1400cc will carry a maximum of four passengers with a pay of Ksh420 for three kilometres, while vehicles with 1400-2000cc pay not less than Ksh530 for the same three-kilometre distance.

For vehicles above 2000cc, ride-hailing operators have proposed a fare structure allowing a maximum of six passengers, with a minimum fare of Ksh630 for a distance of three kilometres.

The association further proposed new tariff systems based on peak hours, off-peak hours, night travel, and off-grid trips.

Under the proposal, peak-hour trips would incur double charges during weekday rush hours and on weekends, while night travel and public holiday trips could cost three times the normal rate. Off-grid trips covering over 40 kilometres and one-way journeys would attract four times the standard fare.

📰 Source: Kenyans.co.ke