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44% of Nairobi ride-hailing users would switch to matatus if fares rise significantly
20th August, 2026 11:52 AM
Nearly half of ride-hailing app users in Nairobi say they will go back to using matatus if taxi fares go up significantly under a proposed government minimum fare rule.
A new study released on August 20, 2026, by market research firm TIFA shows that 44% of commuters in the capital will use matatus more often to cut costs. In total, 60% of app users plan to switch to cheaper alternatives, including boda bodas and walking, if prices rise.
The government proposal aims to set a minimum price for taxi rides. Currently, short trips cost between Ksh180 and Ksh220. The goal is to improve earnings for the estimated Ksh300,000 to Ksh350,000 active ride-hailing drivers in Kenya.
These drivers bring home between Ksh126 billion and Ksh147 billion every year after expenses. However, most Nairobi residents feel their budgets cannot take any more hits.
According to the TIFA Research report, “81% of Nairobi households are already experiencing either rising living costs or constrained incomes, leaving little room to absorb additional increases in the cost of essential goods and services.”
Preference for market competition
Awareness of the plan remains low among commuters, with only 27% saying they had heard about it before the study.
When asked how fares should be set, 63% of users said prices should be determined by market competition between app companies rather than government rules.
Only 33% wanted state regulation. Overall, 59% of respondents said the minimum fare proposal is the wrong policy, citing high living expenses and expensive groceries and fuel.
Impact on daily commuters
Ride-hailing apps have become an essential part of daily life in the city. The survey shows that 72% of all app trips are taken for essential travel, such as going to work or school, business meetings, shopping errands, and medical emergencies.
The average passenger takes about 6.8 trips every month, making travel costs a major part of monthly spending.
If fares go up sharply, only 18% of passengers plan to keep using app taxis as usual. Another 22% say they will stay on the apps but change how they use them, either by riding less often or picking cheaper options on the app.
This means that while higher minimum fares might help drivers earn more per ride, losing passengers could leave drivers with fewer bookings and lower total income at the end of the day.
