Uber has announced a 10% increase in its base fare in Kenya, elevating it to $1.71.
This move comes in response to a strike by drivers who demanded higher minimum prices and changes to the app’s account deactivation policies. The company has also introduced a priority service option, which will charge an additional $0.85 for reduced wait times.
Imran Manji, Uber’s Head of East Africa, stated that the pricing updates aim to balance drivers’ earnings with riders’ affordability.
“Uber has made these pricing updates to ensure that drivers continue to have the opportunity to maximise their earnings while driving on the Uber app and, at the same time, remain at an affordable price point for riders,” Manji said.
The strike, which began on July 16, saw drivers demanding a base fare increase to $2.33 and a review of the company’s account suspension guidelines. When their demands were unmet, drivers began charging their rates and operating offline.
Despite the fare increase, sector union representatives have criticised the adjustment as insufficient. Zakaria Mwangi, Secretary General of the Ridehail Transport Association (RTA), described the raise as “insignificant,” noting that it fails to address high operational costs.
“We don’t feel it. We made our demands clear that we want at least KES300 as the base fare, among other demands,” Mwangi told TechCabal. “They’ve yet to get to 10% of our demands.
We will be back at it again.”
In response to the ongoing concerns, Uber has pledged to invest in customer promotions to maintain affordable ride prices and has introduced cash bonuses for partner drivers. Additionally, the company is forming partnerships with vehicle maintenance firms to help operators manage costs.
Other ride-hailing companies, including Bolt, Faras, and Yego, still need to adjust their prices following a recent meeting with drivers on August 13.
