Yango Eyes Kenya With New Ride-Hailing Model

Kenya’s ride-hailing market has become an important part of the country’s wider gig economy, with digital transport platforms now playing a significant role in how people move around Nairobi and other urban centres.

The sector, however, has also been marked by recurring tensions between ride-hailing platforms and drivers over fares, commissions, fuel costs and working conditions. Driver strikes and protests have periodically highlighted the challenges of maintaining a sustainable model for platforms, fleet operators and drivers alike. It is against this backdrop that Yango Group, which operates across ride-hailing, public transport and delivery services, is evaluating its formal entry into the Kenyan market.

Rather than adopting the conventional model used by many established ride-hailing platforms, Yango is considering an approach that would place local small and medium-sized fleet businesses between the technology platform and individual drivers.

“When we think about entering a market like Kenya, we avoid the traditional, discount-driven race to the bottom that has characterized the sector for years,” stated Shashi Shekhar Singh, Director of Operations for Yango Ride (Africa & Asia), during his address at the Tech Safari Summit 2026 in Nairobi. “Instead, our focus is on introducing a distinct Business-to-Business operational framework built entirely around empowering local Small and Medium Enterprise fleet partnerships.”

Under the conventional ride-hailing structure, individual drivers typically operate as independent contractors and are responsible for costs such as vehicle financing, maintenance and fuel. Yango’s proposed model would instead work with fleet operators that manage groups of drivers while the technology platform provides the underlying ride-hailing infrastructure. According to Singh, Yango’s wider international network includes more than 200 local fleet partners, with individual partners managing teams of roughly 10 to 12 people.

“This model addresses a critical bottleneck in the Kenyan transport sector: credit access. While an individual driver with an inconsistent digital transaction record struggles to secure standard bank financing, an established corporate fleet partner can negotiate asset-backed loans,” said Shashi.

The model would, however, introduce another layer into the relationship between the platform and driver. A ride’s revenue would need to account for the technology platform as well as the fleet operator and driver, potentially creating a different set of cost and margin considerations from those faced by drivers working directly with ride-hailing platforms. The viability of such a structure will also depend on the financial position of the local SMEs involved. Fleet operators would have to contend with vehicle financing, maintenance, taxes, fuel and other operating costs while ensuring that drivers remain adequately compensated.

Pricing presents another consideration in a market where commuters remain sensitive to the cost of transport. Data cited in the article from a 2026 TIFA Research industry survey indicates that 60 percent of Nairobi ride-hailing users would consider switching to traditional matatus or other cheaper alternatives if ride-hailing fares increased significantly. For Yango and its potential fleet partners, this creates a relatively narrow space in which to position the service. Higher fares could make it difficult to attract price-conscious customers, while lower fares could leave less room for fleet operators and drivers to cover their costs.

Yango’s proposed approach therefore appears to place greater emphasis on differentiation than on competing primarily through price. The company has pointed to newer vehicles, driver training and security features as elements of the service it intends to offer. That positioning would depend on whether there is sufficient demand among Kenyan customers for a ride-hailing service that prioritises consistency and other service attributes over the lowest available fare.

Yango is also looking beyond ride-hailing as part of its wider strategy in Kenya. The company has invested in BuuPass, a Kenyan digital platform focused on intercity transport, ticketing and travel technology. Its broader portfolio also includes logistics, parcel delivery and B2B software. For the company, these businesses could provide additional opportunities for local partners beyond individual passenger trips, potentially reducing their dependence on daily ride-hailing demand.

The proposed market entry will also take place within a changing regulatory environment.

Kenya’s ride-hailing industry has faced continued debate over platform commissions, driver earnings and the regulation of gig work. The High Court’s suspension of the 18 percent commission cap has altered the operating environment for platforms, while driver representatives have continued to push for greater regulation of fares and driver earnings. Yango says its approach is informed by its operations across more than 30 countries in Latin America, Europe and the Middle East. However, applying the model in Kenya would require adapting it to local market and regulatory conditions.

The country’s efforts to formalise the gig economy are also likely to keep attention on the relationship between platforms, fleet companies and drivers. Using intermediary SMEs does not necessarily remove questions around driver earnings, working conditions and accountability, but instead changes how those relationships are structured.

For Yango, the proposed B2B model represents a different way of organising ride-hailing operations rather than a direct replication of the model used by existing platforms in Kenya.