Uber has its reduced its commission fees from 25% to 18% in Kenya following a massive strike action by drivers last week.
Last week, Kenyan drivers of ride-hailing apps like Bolt and Uber embarked on a strike in protest of the slow implementation of a new regulation.
The regulation—the Digital Taxi Hailing Regulation—caps all commissions of ride-hailing companies in Kenya at 18%. This means that companies like Bolt and Uber have to bring down their commission rates from 20% and 25% respectively to 18%.
Even though the legislation was enacted in August, as at last week—almost 90 days after its enactment—it was yet to be enforced in Kenya.
The drivers took to the streets and accused the National Transport and Safety Authority (NTSA), the country’s transport regulator, of slowing the implementation process of the regulation.
After the law was enacted, Uber challenged the decision at the supreme court. The company asked the court to nullify the legislation stating that the regulation was unconstitutional and “discouraging to foreign investment”.
The pushback isn’t surprising as the company was forced to exit Tanzania earlier this year after a similar legislation was enacted.
This time, it looks like Uber chose to listen to its drivers and stay instead of driving away.
Imran Manji, head of East Africa for Uber said, “We are committed to Kenya and will continue to find workable solutions that benefit both riders and drivers using the platform as well as the business.”
Now Kenyan drivers await similar changes from Bolt and other ride-hailing apps in the country.
Meanwhile, the NTSA has announced that only four ride-hailing companies—Uber, Bolt, Little and Yego Mobility—had been licensed to operate in Kenya.
In line with its mandate, the regulator asked companies to submit documents for licensing earlier in October. While the six companies submitted applications, only the aforementioned four have been approved at this time.
