Kenya’s online boda boda industry is poised to capture a larger share of the market as digital platforms integrate innovative technologies designed to increase the number of trips within their networks.
Yego, a ride-hailing platform, aims to transition passengers from negotiated fares to a system that calculates charges based on time and distance.
This transformation has the potential to redefine pricing for one of the country’s most popular public transport options, compelling operators to find a balance between maintaining affordable fares for passengers and ensuring sustainable incomes for riders.
The company has launched a digital metering system in the two-wheeler market, enabling passengers to summon a participating rider and activate the trip through the rider’s app.
This initiative aligns with the expansion of ride-hailing firms beyond traditional taxis, targeting the largely informal boda boda sector, which comprises approximately 2.7 million motorcycles nationwide.
In contrast to conventional ride-hailing services, many boda boda trips are still arranged informally, with passengers either hailing riders on the street or negotiating fares at designated locations.
This informal arrangement often results in price variability influenced by factors such as location, demand, time of day, and individual bargaining power.
Industry stakeholders believe that the introduction of metered pricing will provide greater consistency in fares by determining the cost of a journey based on distance traveled and time taken.
Yego Mobility Kenya has commenced the rollout of its MeterMoto service in Nairobi, joining other operators in testing this pricing model in the boda market.
Under this system, the fare starts at Sh100 for the first 2.1 kilometers, with subsequent charges calculated based on time and distance, estimating an effective rate of between Sh16 and Sh18 per kilometer, depending on the journey, according to Yego Kenya founder and CEO Karanvir Singh.
However, a critical challenge for the industry remains whether digital pricing can effectively address the ongoing tension between passenger affordability and rider earnings.
The Ministry of Transport, in collaboration with the National Transport and Safety Authority, is preparing new regulations that will introduce a minimum compensation per trip for ride-hailing taxi and motorcycle drivers, a move likely to lead to increased passenger fares.
The Draft National Transport and Safety Authority (Transport Network Company, Owners, Drivers and Passengers) (Amendment) Regulations 2026 proposes a new national pricing model for both conventional and app-based taxis.
While the government has not yet revealed the proposed rates, industry estimates suggest that the minimum fare could rise from the current base of about Sh220 to between Ksh400 and Ksh500 for cars.
Boda riders have increasingly voiced concerns that current fares are insufficient compared to their operating costs, while passengers remain sensitive to increases in public transport expenses.
Singh emphasized the importance of competitive pricing, noting that the company feels pressure to keep fares attractive, despite riders expressing concerns about the sustainability of existing rates.
“Passengers must be open to paying more. Only then can riders achieve better earnings,” Singh stated.
Digital platforms are also vying for riders by implementing various commission structures.
The platform, which began its operations in Kenya in 2023, will maintain a standard commission of 18% for rides booked through its app, call center, and other digital options.
However, it plans to offer a reduced commission of 10% for trips initiated through its “slide to start” feature, where passengers flag down a participating rider and the journey is activated digitally.
