This archive report was first published on 8 September 2019.
Published on September 8, 2019, a study by Viffa Consult found that taxi-hailing drivers in Kenya are facing cash distress.
According to the study, 66% of drivers grossed over Sh20,000 a week, but most of them received only 30% of this amount in net income after accounting for fuel, car washing, and other expenses.
The minimum wage in Kenya stands at a gross of Sh13,572 per month, and the study found that 52% of drivers who made between Sh20,000 and Sh30,000 a week, and another 52% who made over Sh30,000, received a net of only 30% of their turnover.
‘Despite 66% of drivers grossing over Sh20,000 a week, 52% netted less than 30% of the turnover, not considering fuel, car washing, and other incidental costs that are borne by the driver, which further reduces their net pay,’ the study found.
When taxation and other statutory obligations are factored in, these drivers would be below the minimum wage.
The study also found that most taxi-hailing drivers enter the business to earn additional income or because of inability to secure formal employment, and that flexibility in working hours and better paying jobs are also major reasons for joining the trade.
