Economic pressures force Nairobi households to slash expenses - survey

The pollster said that 81% of respondents said they have been forced to slash household budgets and family maintenance, mostly affecting adults aged 35 and above (91%) and females (84%).

In the survey, 62% cited household financial pressure as forcing them to compromise on transport, fuel, food and education.

Others (19%) cited constrained income as weakening access to economic opportunities, while 12% cited high taxation as their bigger conundrum. 

Likewise, 6% blamed poor governance, corruption, crime and insecurity.

Nairobians aged 18 to 34 have shared similar concerns, while 3% remain unconcerned.

Nairobi provides the most relevant and policy-significant environment for evaluating the potential impact of the proposed minimum fare framework because it is the country's largest and most active ride-hailing market.

TIFA focused on the uptake of ride-hailing transportation among city dwellers, saying that 60% would opt to switch to matatus or other alternatives if fares rose significantly.

"The survey highlights the need for balanced regulation. While improving driver earnings is widely recognised as an important objective, passengers remain concerned about affordability," TIFA said. 

While arguing that fares should be regulated, 63% of ride-hailing users believe that fares should be determined by market competition, while 33% support government regulation of fares.

This comes as Kenya is advancing a minimum fare policy for digital ride-hailing platforms like Uber and Bolt to guarantee higher base compensation for drivers facing high fuel and maintenance costs. 

The proposed rules push baseline minimum trip pay from roughly Ksh.220 up to a targeted range between Ksh.400 and Ksh.500, sparking a debate over consumer affordability and market demand.

President William Ruto has directed the Ministry of Roads and Transport and the National Transport and Safety Authority (NTSA) to fast-track the regulations. 

Kenya's ride-hailing industry is a significant economic engine, generating an estimated Ksh.126–147 billion in total annual driver earnings.