Nairobi — Ride-hailing drivers in Nairobi are warning of shrinking earnings and rising operational strain following the latest fuel price increases by the Energy and Petroleum Regulatory Authority (EPRA).
EPRA on Tuesday raised pump prices, with super petrol increasing by Sh28.69 per litre and diesel by Sh40.30, triggering a ripple effect across transport and logistics costs.
However, the government moved to cushion consumers by cutting Value Added Tax (VAT) on petroleum products from 13 percent to 8 percent, leading to a reduction of Sh9.37 on petrol and Sh10.21 on diesel.
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As a result, petrol in Nairobi now retails at Sh197.60 per litre, while diesel costs Sh196.63. Kerosene prices remain unchanged at Sh152.78.
Despite the relief, drivers say the adjustments are not enough to offset rising costs in an industry already operating on thin margins.
The hike has already pushed up public transport fares and logistics charges, with fears of broader inflationary pressure as households and businesses adjust to higher mobility costs.
Ride-hailing drivers say they are caught between rising fuel expenses and delayed fare adjustments by platform operators, leaving many with reduced earnings.
Patrick Waigwa, a Bolt driver in Nairobi, said pricing models have yet to be updated despite repeated concerns.
"Bolt has yet to review the pricing formula, but for drivers, we have to raise concern before they can act," he said.
"For me, it is a loss of about three hundred shillings in what I take home. You also realize client activity will reduce because people are cutting down on unnecessary movement expenses."
Joseph Kimuhu, a Faras driver, said fare adjustments on apps have not kept pace with fuel costs.
"When you tell clients to add, they show you what the app says, yet these apps have yet to revise the prices," he said.
"We are running into losses because Bolt has taken time to revise its prices."
Uber drivers are also reporting similar strain. Nduruchi Chesoli said the situation is creating tension between drivers and passengers.
"We are dealing with goodwill from customers, and these customers are ordinary Kenyans like me," he said.
"You don't expect them to have that much money. They also feel the pinch, so we are straining."
The impact is also being felt across the wider transport sector, with long-distance operators already revising fares. Bus company ENA Coach has increased fares, with Nairobi-Mombasa passengers now paying Sh2,000, while routes via Narok and Nakuru range between Sh1,700 and Sh1,800--an increase of up to Sh300.
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Industry players warn that delays in fare adjustments across digital and traditional transport services could deepen losses for drivers while accelerating inflationary pressure on consumers.
