By NAIROBI, Kenya — Kenyan taxi drivers are increasingly setting their own fares, defying the pricing algorithms of ride-hailing companies like Uber and Bolt, amid economic pressures and a fierce price war in the country’s transportation sector.
Judith Chepkwony, an eight-year veteran taxi driver in Nairobi, told The Associated Press, “Most of us have these cars on loan and the cost of living has risen. I try to convince the customers to agree to the higher rates. If they can’t pay, we cancel and let them find another driver.”
Drivers report that about half of their passengers eventually agree to pay more than the app-generated fare. This practice, however, violates the guidelines set by ride-hailing companies.
Uber’s Head of East Africa, Imran Manji, said the company is reviewing reports of customers being overcharged. “We encourage all riders to report such instances,” Manji stated.
Linda Ndung’u, Bolt’s manager for Kenya, indicated they are discouraging fare-hiking while the industry seeks a solution to balance driver and customer needs.
The fare dispute comes as Kenya faces economic challenges, including recent deadly protests against tax hikes, high prices of basic commodities, and elevated interest rates, all contributing to lower disposable incomes.
Drivers have organized strikes in Kenya twice this year and at least once last year over low commissions. To coordinate their efforts, many use the walkie-talkie app Zello to collectively agree on higher prices.
Some drivers have produced laminated fare guides, posted inside their vehicles, setting minimum fares above those of the ride-hailing companies. One such guide seen by AP set the minimum fare at 300 shillings ($2.33), compared to the 200 shillings set by Uber and Bolt.
Erick Nyamweya, a Nairobi-based driver, explained their strategy: “We first ask the client where they are going and how much is shown on the app. Then we propose a rate based on our chart which can also be done by quickly multiplying by 1.5.”
The situation has led to frustration among some customers. Lameck Owesi, a rider, told AP, “The negotiations end up taking so much time that it ends up beating the logic of trying to save time by taking a cab. It is frustrating.”
In response to driver demands, local start-up Faras Cabs has raised its fares by up to a fifth this month, according to Chief Commercial Officer Osman Abdi.
Kenya, along with Nigeria and Tanzania, represents one of Uber’s most important markets in Africa, according to company executives. The current dispute highlights the challenges faced by international ride-hailing companies in adapting to local economic conditions in developing markets.
As the standoff continues, both drivers and passengers in Nairobi find themselves navigating an increasingly complex and unpredictable transportation landscape.
