Estimated 300K to 350K Kenyans registered as ride-hailing drivers – TIFA

A recent survey conducted by TIFA reveals that the ride-hailing industry in Kenya indirectly and directly supports the livelihoods of between 1.2 million to 1.75 million household members. This growing importance of the sector to incomes and economic activity is highlighted by the fact that drivers, who operate on platforms such as Uber, Bolt, Little Cab, and Faras, form a significant source of livelihoods beyond the drivers themselves.

An estimated 300,000 to 350,000 active drivers participate in Kenya's ride-hailing sector, collectively earning between Ksh126 billion and Ksh147 billion annually.

The survey found that ride-hailing serves as the primary source of income for 53% of drivers, while 47% use the sector to supplement earnings from other activities. This indicates that changes to ride-hailing fares could have broader consequences beyond just the drivers and passengers. The report underscores that ride-hailing is an essential pathway to economic mobility, with 98% of drivers reporting improved living standards.

Earnings from ride-hailing not only support households but also contribute to wider local economic activity.

As policymakers consider implementing a minimum fare framework to enhance driver earnings while maintaining a sustainable ride-hailing market, the survey points out the challenges and trade-offs involved. Rising fuel and vehicle operating costs, declining driver earnings, and concerns about fare sustainability create a complex situation. TIFA highlights that 60% of Nairobi ride-hailing users would switch to matatus or other alternatives if fares increased significantly, demonstrating the price sensitivity of passengers.

The research emphasizes that affordability remains a critical concern when considering changes to transport fares. While higher minimum fares could benefit drivers, a decline in passenger demand could adversely affect earnings and the livelihoods of households dependent on the industry. Policymakers face the challenge of balancing improved driver incomes with affordable transport options to protect the livelihoods tied to Kenya's rapidly expanding ride-hailing economy.