Daily target vs salary: how to pay an Uber driver in Kenya (2026)
Driver salary in Kenya in 2026: the legal minimum wage for drivers, what PAYE, NSSF, SHIF and the housing levy add, and how a salary compares with a daily amount.
Updated 1 October 2026 · 7 min read
An owner who does not drive can pay a driver in one of two ways. The driver can keep the fares and pay the owner a fixed daily amount, which is the usual way in Nairobi. Or the owner can take the fares and pay the driver a salary. They sound like two ways of doing the same thing. They are not. A salary makes the owner an employer, and Kenyan law then sets a minimum wage, deductions and paperwork.
This guide covers the legal floor for drivers' pay in 2026, the cost of a salaried driver once the deductions are added, and when each model works.
The legal minimum wage for a driver (May 2026)
Minimum wages for drivers are set by the Regulation of Wages (General) Order. The latest version is the Regulation of Wages (General) (Amendment) Order, 2026 (Legal Notice No. 95, published 29 May 2026). It applies from 1 May 2026, so pay for May and June was owed at the new rates. It followed the 12% rise President Ruto announced on Labour Day.
For a driver of cars and light vans, the monthly minimums are:
| Where the driver works | Monthly minimum | Daily rate | Hourly rate |
|---|---|---|---|
| Nairobi, Mombasa, Kisumu, Nakuru and Eldoret cities | KSh 24,358.73 | KSh 1,170.46 | KSh 219.28 |
| Former municipalities, and Mavoko, Ruiru and Limuru town councils | KSh 22,481.83 | KSh 1,080.47 | KSh 199.98 |
| All other areas | KSh 18,582.41 | KSh 892.89 | KSh 165.14 |
For comparison, the old 2024 Order (Legal Notice No. 164 of 2024) set KSh 21,748.87 for a car driver in the cities. The same 2026 schedule sets KSh 30,634.69 for a driver of a medium-sized vehicle and KSh 40,724.23 for a driver of heavy commercial vehicles in the cities.
Two points from the Order and the Employment Act:
- These figures do not include housing. The schedule is stated as "exclusive of Housing Allowance". Section 31 of the Employment Act says an employer must provide reasonable housing, or pay enough on top of the wage for the employee to rent it, unless the contract already builds rent into the basic pay.
- A "casual" driver does not stay casual for long. Under section 37 of the Employment Act, a casual employee who works continuously for a month or more is treated as being on a monthly contract.
What salaried drivers actually earn
There is no official "Uber driver salary". What is published:
- The legal floor: KSh 24,358.73 a month in the five cities, as above.
- Corporate driving jobs: a company driver post in Nairobi advertised in July 2026 offered KSh 60,000 a month, but asked for eight years of experience driving senior executives.
- What drivers make on the apps: Bolt's Kenya driver page gives a median of KSh 16,043 a week for June 2026, roughly KSh 69,500 a month over a full month. Bolt says these are rider payments and not guaranteed. In March 2026 Bolt's East Africa general manager put the average driver at about KSh 63,000 a month.
That last point matters. A driver who can make more than the minimum wage on their own account, paying you a daily amount, will not stay long on a minimum-wage salary.
What a salaried driver costs you
A salary brings employer duties. Once you employ a driver you deduct and pay these every month:
| Item | Driver pays | You pay on top |
|---|---|---|
| NSSF (from February 2026) | 6% of pay up to KSh 108,000 | the same 6% again |
| SHIF (Social Health Insurance Fund) | 2.75% of gross pay, minimum KSh 300 | none |
| Affordable Housing Levy | 1.5% of gross pay | another 1.5% |
| PAYE | income tax after deductions | none |
PAYE bands start at 10% on the first KSh 24,000 of monthly taxable pay, with a personal relief of KSh 2,400 a month. KRA lets NSSF, SHIF and the housing levy come off before tax. PAYE is due to KRA by the 9th of the following month, and the housing levy by the 9th working day after the month ends.
Worked example: a driver on the Nairobi minimum of KSh 24,358.73
| KSh | |
|---|---|
| Gross salary | 24,358.73 |
| NSSF, driver's 6% | − 1,461.52 |
| SHIF 2.75% | − 669.86 |
| Housing levy 1.5% | − 365.38 |
| Taxable pay | 21,861.97 |
| PAYE (10% = 2,186.20, less 2,400 relief) | 0 |
| Driver takes home | 21,861.97 |
| Your NSSF (6%) | + 1,461.52 |
| Your housing levy (1.5%) | + 365.38 |
| Your monthly cost | 26,185.63 |
That is before any housing allowance, overtime or leave cover. Run any salary through the PAYE calculator.
On a salary the driver is also entitled to at least one rest day in every seven and at least 21 working days of paid leave a year (Employment Act, sections 27 and 28). And under section 66A of the Traffic Act, nobody may drive a public service vehicle for more than eight hours in any 24.
How the daily-amount model compares
On a daily amount the driver is not on your payroll. The driver's own Uber or Bolt account is paid, the driver buys the fuel, and pays you an agreed amount for each working day. Business Daily put the usual rate at about KSh 1,500 a day, depending on owner and model — but that report is from 2021, so check what owners near you charge now. See what owners really make.
| Salary | Daily amount | |
|---|---|---|
| Who the platform pays | You, through a fleet account | The driver |
| Fuel | Usually you | The driver |
| Slow week | Your loss | The driver's loss |
| Your income | Fares, less commission, fuel and salary costs | Fixed per working day |
| NSSF, SHIF, levy, PAYE | You deduct and pay | Not your payroll |
| Work for you | Payroll, fuel, checking trips | Following up the daily amount |
| Risk | The car earns little but the salary is still due | The driver stops paying |
To take the fares yourself you need a fleet account, so the platform pays you rather than the driver — see how fleet accounts work.
Which one to choose
A salary suits you if you have several cars, someone to manage fuel and check trips every day, and enough cash to carry a slow month. You keep every shilling of a good week, and you pay your costs in a bad one.
A daily amount suits you if you want a predictable income and do not want to run payroll. Its weak point is collection. A missed day noticed the same evening is a phone call. A missed week noticed on Saturday is a debt.
Some owners mix the two: a small fixed wage plus a share of fares, or a daily amount with a bonus for a clean month. Whatever you choose, write it down — the driver agreement generator makes a printable version — and check the numbers with the daily amount calculator.
If you choose the daily amount
Gariboss is built for that model. You set a daily amount for each car, and rest and garage days are not counted as owed. The driver pays into your own M-Pesa till. Payments are matched to the car automatically, the driver can see their running balance, and every evening you get a WhatsApp report of who has paid.
Driver pays
From his own M-Pesa, when he stops for the day
Your till
The money lands with you, not with anyone in between
Recorded
Matched to the right car and the right day
Questions owners ask
What is the minimum wage for a driver in Kenya in 2026?
Under the Regulation of Wages (General) (Amendment) Order, 2026, in force from 1 May 2026, a driver of cars and light vans must be paid at least KSh 24,358.73 a month in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret, KSh 22,481.83 in former municipalities and Mavoko, Ruiru and Limuru, and KSh 18,582.41 elsewhere. These figures exclude housing allowance.
How much does it cost to employ a driver on the minimum wage in Nairobi?
About KSh 26,185.63 a month. That is the KSh 24,358.73 wage, plus the employer’s 6% NSSF (KSh 1,461.52) and 1.5% housing levy (KSh 365.38), before any housing allowance. The driver takes home about KSh 21,861.97 after NSSF, SHIF and the housing levy. No PAYE is due at that level because the personal relief covers it.
Is an Uber driver who pays me a daily amount my employee?
On the usual arrangement the driver is paid by the platform on their own account and pays you for the use of the car, so you do not run payroll for them. If instead you take the fares and pay the driver a wage, you are an employer and the minimum wage, NSSF, SHIF, housing levy and PAYE rules apply. Get advice if your arrangement mixes the two.
Is salary or daily amount better for a car owner?
A salary gives you every shilling of a good week but makes you carry fuel, payroll and the bad weeks. A daily amount gives a predictable income with no payroll, but you have to collect it every day. Most single-car owners in Nairobi use a daily amount.
Sources
- Kenya Gazette — Regulation of Wages (General) (Amendment) Order, 2026, L.N. 95 (via Grant Thornton)
- Kenyans.co.ke — FKE tells employers to apply new minimum wages from 1 May 2026
- WageIndicator — 2024 minimum wages, L.N. 164 of 2024 (car driver KSh 21,748.87)
- Employment Act, 2007 — sections 27, 28, 31 and 37
- KRA — PAYE bands, personal relief, allowable deductions and due date
- KRA — Collection of the Affordable Housing Levy
- RSM Eastern Africa — NSSF rates from 1 February 2026
- Nashthuo — SHIF at 2.75% of gross pay, minimum KSh 300 (July 2026)
- Traffic Act, section 66A — maximum driving hours (via Sheriaplex)
- Corporate Staffing — company driver job, Nairobi, KSh 60,000 (July 2026)
- Bolt Kenya — median driver earnings, June 2026
- Capital FM — Bolt drivers earn an average of Sh63,000 monthly (March 2026)
- Business Daily — drivers lease vehicles at about Sh1,500 a day (August 2021)