Industry-Wide Disruption

NAIROBI—A nationwide strike by digital taxi drivers that commenced on Monday, November 3, 2025, has severely disrupted services on major ride-hailing platforms, including Uber, Bolt, and Faras. The industrial action, called by the Amalgamation of Digital Transport Organisations, Kenya, saw thousands of drivers switch off their apps to protest persistent grievances over low earnings, high operational costs, and opaque commission structures. The notice for the strike was signed by the organization's joint chairs, Daniel Manga and Justin Nyaga.

The shutdown has exposed deep-seated tensions within Kenya's gig economy, highlighting the precarious financial position of drivers who bear the costs of fuel, vehicle maintenance, and insurance. Driver associations have long argued that the fare and commission models used by global platforms have systematically eroded their take-home pay, a situation exacerbated by rising living costs. This recent action follows a history of similar protests, including a two-day strike in April 2025 and another in July of the previous year, signaling unresolved structural issues in the sector.

Little Cab Capitalises on Stability

While its competitors faced paralysis, Kenyan-owned Little Cab remained fully operational, experiencing what its management described as an "exceptional surge" in new driver and rider registrations within the first 24 hours of the strike. The company reported that its onboarding teams worked extended hours to process the high volume of applications from drivers seeking an alternative platform. In a statement on Wednesday, November 19, 2025, Little Cab CEO Kamal Budhabatti framed the influx as a market response to the company's business model, stating, “Drivers want dignity and riders want reliability. Little has built its model around this simple truth, and today the market is speaking for itself.”

A primary attraction for drivers migrating to Little Cab is its commission structure. The company charges a flat 18% commission on all rides, a figure that aligns with the legal cap mandated by the Kenyan government's Transport Network Companies (Owners, Drivers and Passengers) Regulations, 2022. This regulation, which came into force after extensive lobbying by driver groups, was a significant reduction from the 25% previously charged by some international platforms. Drivers switching to Little cited the platform's transparent and predictable earnings as a key advantage over rivals, who have faced accusations of unpredictable deductions and algorithmic pricing that disadvantages them.

Government Intervention and a Shifting Market

The widespread disruption prompted government intervention. On Tuesday, November 18, 2025, the Ministry of Transport directed all digital taxi operators to implement a new fare structure, effectively increasing rates by approximately 50%. Paul King'ori, the Director for Road and Railway Transport, announced that the new rates are aligned with the 2023 pricing advisory from the Automobile Association of Kenya and are intended to ensure drivers can cover their operational costs. For instance, the per-kilometre rate for vehicles up to 1050cc was raised from Sh22 to Sh33.1. This move represents a significant victory for the striking drivers.

The strike and subsequent regulatory action are reshaping Kenya's ride-hailing landscape. Little Cab's uninterrupted service and compliance with the 18% commission cap have bolstered its position as a stable and driver-friendly alternative. The platform also saw a significant increase in corporate account registrations, as businesses sought reliable transport for their employees amidst the uncertainty. The long-term impact on consumer prices and market dynamics remains to be seen, as the Ministry of Transport has also indicated plans to develop a National Taxi Pricing Policy with assistance from the World Bank to create a more sustainable regulatory framework. This follows other fiscal pressures on the sector, including a 6% Significant Economic Presence (SEP) tax on non-resident digital companies.