Uber exits Nigeria and Uganda: What it means for Kenya’s ride-hailing market

Uber's abrupt exit from Nigeria and Uganda is drawing attention to Kenya's ride-hailing market, as the government considers changes in driver pay. This could potentially reshape fares for millions of passengers and the economics of an industry valued at up to Ksh147 billion annually. Uber ended its operations in Nigeria and Uganda on September 2, 2026, after a "thorough review" of its business, though no specific reason was given.

The company maintains its commitment to sub-Saharan Africa. While there's no indication that Uber is planning to leave Kenya, the withdrawals serve as a significant lesson for Nairobi as it seeks to increase driver earnings while keeping services affordable and profitable for platforms. An estimated 300,000 to 350,000 drivers generate between Ksh126 billion and Ksh147 billion in annual net earnings, based on a TIFA Research survey.

However, official figures are lower. The government is proposing minimum compensation levels for ride-hailing drivers to address complaints of low earnings and rising costs, including fuel, maintenance, insurance, and financing. These changes could raise both driver earnings and passenger costs. A TIFA survey of 733 Nairobi residents found that 59% opposed the proposed minimum-fare policy, while only 18% said they would continue using ride-hailing without change.

This dilemma of balancing driver earnings and passenger affordability is not unique to Kenya. Uber exited Nigeria due to intense competition, rising fuel costs, inflation, and currency volatility, similar challenges faced by other international platforms. As Kenya's large and growing ride-hailing market presents opportunities and pressures, policymakers must find a balance between protecting drivers, maintaining affordable fares, and sustaining a viable market for platforms.