Why 60pc of Kenyans would abandon ride-hailing if fares rise

Most Kenyans who use ride-hailing services want fares left to market forces rather than fixed by the government, a new survey by Trends and Insights For Africa (TIFA) Research shows.

This is even as the online taxi industry generated between Sh126 billion and Sh147 billion in the past year.

Only 33 per cent of respondents supported a government proposal to set minimum trip prices while 63 per cent said fares should be determined by the market. Four per cent were unsure.

Awareness of the proposed policy remains low, with only 27 per cent of respondents saying they knew about the fare regulation plan before the survey while 73 per cent said they had no idea it existed.

The debate follows a May 22 directive by President William Ruto, who ordered the Ministry of Transport and the National Transport and Safety Authority (NTSA) to fast-track minimum fare regulations for ride-hailing platforms.

Ruto issued the directive at State House, Mombasa, after consultations with matatu operators and digital taxi drivers amid a fuel price crisis that has squeezed driver earnings.

The proposed rules fall under draft National Transport and Safety Authority (Transport Network Company, Owners, Drivers and Passengers) (Amendment) Regulations, which are currently undergoing public participation.