The National Transport and Safety Authority (NTSA) has rejected Bolt Kenya’s license renewal.
In the letter, NTSA’s deputy director and head of licensing, Cosmas Ngeno explained that the decision was due to complaints from the taxi drivers about Bolt’s operations.
“The most pressing concerns are in relation to commission charges and an illegal booking fee which has caused significant concern amongst the driver community,” the letter by NTSA stated.
“It has been brought to our attention, along with substantial evidence (attached), that your company is charging commission rates higher than 18%, and an unauthorized booking fee has been imposed This is in violation of sub regulation (2) (g) of the TNC (Transportation network company) regulations.”
Noting Bolt’s rates unlawfully exceeded the regulated 18%, the transport authority authorized Bolt to rectify the situation, to avoid further complaints by Bolt drivers.
NTSA demands to Bolt
“In light of these, we urgently request you to provide us with a concrete plan of action outlining steps your company intends to take to rectify this situation, breakdown of the commission rates currently in effect, highlighting specific instances where rates exceed the regulated 18%,” said the letter in part.
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The letter was sent to Bolt Kenya’s Country manager on the 5th of October,2022.
In response, Linda Ndungu stated that Bolt has fully complied with NTSA’s Transportation Network Companies (TNC), Owners, Drivers and Passengers Regulations, 2022 and stipulated licensing requirements.
“Bolt was issued with a Transport Network Company license, effective 28th October 2022 and has been fully compliant with the stipulated regulation to cap its commission rate at 18 per cent for drivers using our application,” she noted.
Also Read: Bolt to Invest Sh66.9B to Expand Services in Africa
Digital Taxis Commission Cap
In October 2022, taxi drivers were pushed to down their tools after NTSA delayed implementing the digital taxi rates commission cap, which regulated commission rates at 18%.
Digital drivers accused NTSA of slowing implementation of the Digital Taxi Hailing Regulation that was gazetted in June 2022.
However, in March 2023, Transport Cabinet Secretary Kipchumba Murkomen noted that the drivers and owners of motor vehicles registered with the transport network companies shall not pay commissions exceeding 18 percent of the total earnings per trip.
“I urge all current and aspiring applicants for transport network company licenses to regard the stipulated requirements with utmost seriousness and comply with the Regulations without exception, as they are and will continue to be enforced rigorously,” Murkomen stated while launching Yego Mobility.
The license rejection deals a heavy blow to the Estonian-based firm as it was lining up fresh investments to expand its reach in the local market.
In February 2023 Bolt invested Ksh66.9 billion in Kenya and the rest of Africa in efforts to expand their mobility services.
