Up to 1.75 million household members depend directly or indirectly on Kenya’s ride-hailing industry, with drivers earning as much as Sh147 billion a year, a new TIFA Research survey has found.
The study shows the sector has become an important source of income for thousands of families, with between 300,000 and 350,000 active drivers working across the industry.
TIFA also found that 98% of drivers reported an improvement in their living standards since taking up ride-hailing work.
The findings, released on Thursday, August 20, 2026, come as the government considers introducing a minimum fare for ride-hailing services, a move that could push up the cost of trips for passengers using platforms such as Bolt, Uber and Little Cab.
TIFA found that 53% of drivers rely on ride-hailing as their main source of income, while the remaining 47% use it to supplement earnings from other jobs or businesses.
The research estimates that drivers collectively earn between Sh126 billion and Sh147 billion annually, with the money helping to support households and contributing to economic activity beyond the transport sector.
However, the proposed minimum fare is facing resistance from a majority of Nairobi residents who use ride-hailing services.
According to the survey, 59% of users believe introducing a government-set minimum fare would be the wrong policy, compared with 39% who support the proposal. Another 2% were undecided.
Among those opposed to the proposal, 36% said fares should be left to market forces, while another 36% warned that higher prices would make ride-hailing unaffordable.
Those backing the proposal said drivers need better earnings, government regulation is necessary and passengers could accept higher fares if they result in better services.
The debate comes at a time when many households are already struggling with rising expenses and limited incomes.
TIFA reported that 81% of households were dealing with either higher living costs or reduced incomes, leaving little room for increases in essential expenses.
The rising cost of living was identified as the biggest household concern by 62% of respondents. Transport, fuel, food and education were among the main expenses putting pressure on families.
A further 19% cited low incomes, poor business performance or unemployment as their biggest challenge, while 12% pointed to high taxes.
The survey also shows that ride-hailing has moved beyond occasional trips, with most journeys serving everyday needs.
TIFA found that 72% of ride-hailing trips are made for essential activities such as travelling to work or school, conducting business, shopping, running errands and dealing with emergencies.
On average, a passenger makes about 6.8 ride-hailing trips every month.
A rise in fares could therefore have a direct effect on how people move around Nairobi. Sixty per cent of ride-hailing users said they would turn to other forms of transport if prices rose sharply.
Among them, 44% said they would use matatus more frequently, while 7% would increase their use of boda bodas. Others said they would choose cheaper ride-hailing services or simply reduce the number of trips they make.
TIFA said the results show that passengers are highly sensitive to changes in fares, presenting a challenge for policymakers trying to improve drivers’ earnings while avoiding additional financial pressure on households.
The research was carried out between July 17 and 21, 2026, among 733 adults in Nairobi County through face-to-face household interviews.
The respondents, comprising men and women aged 18 and above, were interviewed mainly in English and Swahili. The survey had a margin of error of plus or minus 2.18%.