Little CEO Kamal Budhabhatti speaking during Carrefour Kenya's partnership with Little cab to roll out electric bikes which will be used to deliver online orders. [Wilberforce Okwiri, Standard]

Tax-hailing platform Little has announced a 15 per cent increase in rates across all its fleet categories, aimed at cushioning drivers against the economic challenges they face.

The firm said the rate adjustment will ensure drivers earn a fairer wage and also helps ensure the reliability, convenience, and safety of the services offered by Little to its Clients.

Little CEO Kamal Budhabhatti lauded the move saying it will boost drivers' earnings.

“Little has been a listening and caring partner. We have heard and analysed the requests from our drivers. Despite the tough economic times that all Kenyans are facing, we believe it is important to support the individuals who keep our platform running," noted Budhabhatti.

"This increase may mean slightly higher costs for our clients, but it also guarantees more reliable and convenient services. A happy driver will always deliver excellent service.”  Drivers lauded the firm for being economically sensitive to their well-being.

Over the past month, the ride-hailing industry in Kenya has been marked by unrest, as drivers demand better rates to sustain their livelihoods amidst rising costs. With increased competition from both local and international players, the industry has faced disruptions.

The increase comes barely a week after Uber increased its base fare across the country by 10 per cent.

The increase was termed a move to pacify its drivers who went on strike imposing their prices.

In the increase, the minimum price will be Sh220 with an introduction of a priority service that will charge an additional Sh110 for a shorter wait.

Several drivers have praised the move saying it is economically sensitive and will play a key role in addressing their concerns.