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Amidst the ongoing discussions surrounding the renewal of its operating license in Kenya, Bolt Kenya is optimistic that a resolution will be reached before its current license expires on October 28. The National Transport and Safety Authority (NTSA) of Kenya recently denied Bolt’s application to renew its Transport Network Company license, citing concerns over illegal commissions and booking fees.
In response to these allegations, Linda Ndungu, the Country Manager for Bolt Kenya, clarified that her company has complied with the regulatory requirement for commissions, maintaining the stipulated 18% commission rate set by the Kenyan transportation regulator. She acknowledged that Bolt does charge a booking fee, which is paid by passengers, although she did not specify the exact percentage for this fee.
The backstory to the license renewal issue involves protests by drivers on ride-hailing platforms like Uber and Bolt in September 2022. This led to calls from key stakeholders for government intervention in the e-hailing sector. In response, the NTSA was tasked with regulating the industry, resulting in the establishment of the Transportation Network Companies (TNC), Owners, Drivers, and Passengers Regulations, 2022.
Under these regulations, e-hailing companies are required to obtain an annual license, subject to compliance with the regulation’s provisions. The regulations stipulate that ride-hailing apps must not charge commissions exceeding 18% of the total fare and must not impose booking fees. Bolt obtained a Transportation Network Companies (TNC) license on October 28, 2022, which is set to expire on October 28, 2023.
The NTSA Acting Director General, Cosmas Ngeso, stated that the authority received numerous complaints and evidence from drivers and their representatives, alleging that Bolt violated the regulation. They primarily raised concerns about excessive commission charges and an unauthorized booking fee. Ngeso emphasized that these actions violated the TNC regulations.
In response to these allegations, Bolt Kenya’s Country Manager, Linda Ndungu, justified the booking fee, explaining that it was designed to ensure platform efficiency. She clarified that this fee is paid by passengers, not drivers.
While the situation appears to be in breach of the regulation, the regulations themselves are not explicit about what constitutes an authorized booking fee. Linda emphasized that Bolt Kenya still possesses a valid license and remains fully operational. The company is committed to working closely with the regulatory body to resolve the ongoing annual license renewal process.
Linda also highlighted Bolt’s excitement about its €100 million investment in the Kenyan market to expand its services to more cities and town centers, providing affordable and convenient options for passengers while creating earning opportunities for Kenyans.
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