Ride-hailing giant Uber has increased its base fare in Kenya by 10% in an attempt to appease drivers who recently went on strike demanding higher rates. The minimum fare has been raised to KES 220 ($1.71), with an additional option for a priority service that charges KES 110 ($0.85) for a shorter wait time.
“Uber has made these pricing updates to ensure that drivers continue to have the opportunity to maximize their earnings while driving on the Uber app, while still offering an affordable price point for riders,” said Imran Manji, Uber’s Head of East Africa, in a statement.
The fare increase follows a strike by Uber drivers on July 16, where they demanded a minimum fare of KES 300 ($2.33) and a review of the guidelines for account suspension and deactivation in disciplinary cases. When their demands were not met, drivers began charging their own rates and taking rides offline.
However, the fare increase has been met with disappointment from the sector’s union representatives, who argue that the adjustment is insufficient. “We don’t really feel it. We made our demands clear that we want at least KES 300 as the base fare among other demands,” said Zakaria Mwangi, Secretary General of the Ridehail Transport Association (RTA). “They’ve not gotten to 10% of our demands. We will be back at it again.”
Despite the fare hike, drivers continue to express concerns that the current rates do not adequately cover the rising operational costs. Uber has responded by increasing investment in customer promotions to maintain affordability for riders and introducing cash bonuses for partner drivers. The company is also entering partnerships with vehicle maintenance firms to help drivers reduce their expenses.
Meanwhile, other ride-hailing companies, including Bolt, Faras, and Yego, have yet to adjust their prices following a meeting between the apps and drivers on August 13.
