Ride-hailing taxi/SCREENGRAB




A new survey by TIFA Research has found that a majority of Nairobi residents oppose the government’s proposed minimum fare policy for ride-hailing services.

Residents expressed concerns that regulation could make rides more expensive.

The survey on public perception towards the proposed minimum fare policy found that 59 per cent of respondents opposed the proposal, while 39 per cent supported it. Two per cent said they did not know.

The findings suggest that opposition to the policy is largely driven by concerns over affordability rather than resistance to efforts aimed at improving the welfare and earnings of ride-hailing drivers.

The government is considering introducing a minimum fare for ride-hailing services as part of efforts to improve driver earnings and create what it describes as a more sustainable industry.

Currently, fares are largely determined by market forces, with demand and supply influencing the prices charged by ride-hailing companies.

Under the proposed policy, the government would introduce a mandated minimum fare below which ride-hailing trips could not be priced.

However, the TIFA survey indicates that passengers remain concerned about the potential impact of such a move on their transport costs.

A clear majority, 63 per cent, said ride-hailing fares should be determined by competition among companies and market forces rather than government regulation.

Thirty-three per cent supported government regulation of fares, while four per cent did not give a response.

The findings point to a strong preference among consumers for market-driven pricing, with affordability emerging as a major consideration.

TIFA said the results suggest that passengers recognise the importance of improving driver earnings but are reluctant to support a policy that could transfer the cost of better remuneration directly to consumers through higher fares.

The survey also found that ride-hailing demand is highly sensitive to changes in prices.

About 60 per cent of Nairobi ride-hailing users said they would switch to matatus or other alternative forms of transport if fares increased significantly.

The findings indicate that substantial fare increases could reduce the frequency with which consumers use ride-hailing services, as passengers seek cheaper alternatives.

In a separate assessment of consumer reactions to higher fares, 44 per cent of users said they would use matatus more often if ride-hailing prices increased.

Only 18 per cent said they would continue using ride-hailing services as usual.

A further 22 per cent said they would reduce their use of the services, with 11 per cent saying they would use ride-hailing less often and another 11 per cent opting for cheaper ride-hailing options.

The survey also found that awareness of the proposed minimum fare remains relatively low. Only 27 per cent of ride-hailing users said they were aware of the proposed policy.

Among those who were aware, 42 per cent believed the policy would negatively affect passengers by increasing the cost of rides, while 12 per cent expected commuters to switch to alternative forms of transport.

TIFA said passengers prioritise affordable, market-driven fares, while supporters of the policy largely view it as a mechanism for improving driver earnings.

Thirty-six per cent of respondents said fares should be determined by the market, while another 36 per cent feared the policy would make rides more expensive.

The strongest argument in favour of the proposed policy was that drivers deserve better earnings, cited by 16 per cent of respondents.

The survey was conducted between July 17 and 21, 2026, across Nairobi County through face-to-face, household-based interviews.

A total of 733 respondents aged 18 years and above participated in the survey, with interviews conducted mainly in Swahili and English. The survey had a margin of error of plus or minus 2.18 per cent.