Digital taxi drivers will now earn more for every trip booked in part of the latest reforms within the sector.
In a statement, Transport Cabinet Secretary Kipchumba Murkomen noted that an agreement was reached for the revenue generated from the booking fees made for every trip to be shared between the ride-hailing operators and the drivers.
This, according to Murkomen, would enhance the take-home for the drivers.
The booking fee is usually added to the final price charged to the rider whereby most taxi-hailing operators charge a maximum fee of 11 per cent.
The fee also covers taxes including Value Added Taxes (VAT). This is separate from the service fee charges instituted by the operators.
Further, the CS announced that his Ministry would conduct a Regulatory Impact Assessment on the sector to inform and recommend areas of improvement.
He noted with concern that the sector faced several challenges including the security of the riders, drivers and commuters as well as increased operational costs occasioned by the hike in fuel prices.
"Urgent reforms we are working on include a review of the regulatory environment to ensure a win-win situation for all stakeholders in the ride ride-hailing space," he explained.
"We have learnt a lot through the implementation of the regulations, and this is what has motivated the review and conduct of a Regulatory Impact Assessment to inform and recommend areas for further improvement."
Additionally, Murkomen encouraged the taxi-hailing companies to support the government's agenda of adopting electric vehicles to improve on climate and reduce emissions.
He urged the companies to create a business model that will help investors, particularly drivers and vehicle owners, access affordable funding for electric vehicles and bodabodas.
"The Ministry remains committed to supporting investors in the country through favourable policies that will enhance business processes and create employment opportunities for the youth,"he detailed.
"Ride-hailing services have provided job opportunities to over 65,000 Kenyans. This has immensely boosted the country’s economic agenda under the Bottom-up Economic Transformative Agenda (BETA) that focuses on improving the economic well-being of all Kenyans regardless of their social standing."
