Taxi-hailing company Bolt has increased its fare prices in a bid to cushion its restless army of drivers from record fuel prices that have eaten into their margins.
Bolt said the increased prices had been affected with the base fare now ranging from Sh70 to Sh100 across the Economy, Base, Boda and XL categories in Nairobi.
“The minimum fare has also been increased, with a range of Sh200 and Sh250 across the categories. Bolt has also increased per kilometre pricing and introduced a long-distance rate,” said Bolt in a statement.
The firm said the price changes, which will also be implemented in Mombasa, Kisumu, Kakamega, Nakuru, Naivasha and the Mount Kenya region, are aimed at cushioning drivers from high costs.
“At Bolt, the interests of our driver community remain at the heart of our business and we truly believe that happy drivers provide better quality service for customers. As such, we have adjusted our pricing to mitigate the rising fuel costs,” said Bolt country manager Linda Ndung’u.
Last week, the Energy and Petroleum Regulatory Authority (EPRA) announced an increment in the prices of fuel to record highs of Sh217.36, Sh205.47 and Sh205.06 per litre of petrol, diesel and kerosene, respectively following the previous month’s outsized climb of Sh16.96, Sh21.32 and Sh33.13 per litre of the three products, respectively.
Last week’s increase came despite the government dipping into the stabilisation fund for the first time since August to provide a Sh1.76 billion cushion to avert a steeper price increase.
The government has continued to laud the impact of the government-to-government deal under which Kenya has been importing fuel from Saudi Arabia and the United Arab Emirates on a credit agreement'
Energy Cabinet Secretary Davis Chirchir said the pact has slowed down the depreciation of Kenya shilling by eliminating spot purchases of US dollars by oil marketers.
The continued fuel price increments have continued to squeeze key economic drivers as well as household budgets resulting in an unprecedented sky-high cost of living.
Last month, Public Service Vehicle (PSV) operators announced the ballooning of fares by up to 20 percent on all routes immediately following the EPRA review.
Bolt says that the increase in its pricing will aid in ensuring predictable earnings for drivers on the platform, as well as help strike a balance for customer preference.
“This adjustment reaffirms our commitment to offering top earnings for drivers on our platform, and to remain the preferred, cost-effective choice for our customers,” said Ms Ndung’u.
The firm has also spelt out efforts aimed at enhancing its driver relations saying that it has established a ‘Driver Engagement Center’ located at Delta Chambers, Westlands and accessible on an appointment basis.
The initiative comes against the backdrop of reports emerging that the Kenyan transport sector regulator, National Transport and Safety Authority (NTSA), has declined to renew the taxi firm’s operating licence on account of swelling complaints from drivers and their representatives about non-compliance and violation of regulations.
