Kenya`s National Transport and Safety Authority (NTSA) has refused to renew the licence of the ride-hailing platform, Bolt, to operate in that country.
According to the law, ride hailing platforms in the country should receive 18% commission from drivers. However, Bolt defaulted by charging additional booking fees, and higher commissions than the NTSA benchmark.
The commission ceiling was instituted after a massive protest by drivers, which ended in a lawsuit ending in court ruling in favour of the drivers.
Also Read: Kenyan drivers want Bolt license revoked but…
Bolt had written for a renewal of its operating licence with only 17 days left to its expiry.
However, the NTSA Deputy Director and head of licencing, Cosmas Ngeso, informed Bolt that it would lose its license unless it addressed the breaches.
Bolt is reported to have said it is working with the regulator to get its licence.
The NTSA has asked Bolt to explain the rationale behind its commission structure, and also stop its “ïllegal” booking fee. Per Bolt, the booking fee is an additional fee that “covers support and enhanced technological features that ensure an even more efficient service on our platform”.
The regulator says it has received several formal complaints from drivers on the non-adherence of Bolt to regulations, and says these complaints must be addressed before the company’s licence can be renewed.
Bolt is not the only ride-hailing company in Kenya that charges booking fees; Uber does too but Uber has explained that its booking fees are used to cover taxes such as VAT. Without charging the booking fee, the charges would reduce driver earnings, the company explained.
