Amidst driver protests, the National Transport and Highways Authority (NTSA), has decided not to renew Bolt’s operating license. This is bound to massively impede the European company’s foothold in the Kenyan market, given its popularity with the low-income market.
Illicit commissions and unreasonable booking fees are some of the chief concerns amongst the operators, who are crying foul. The charges are taking significant cuts from the drivers’ revenue, thereby reducing their earnings significantly. This is also by aggravated by the stinging effects from the fuel price hikes. NTSA acting Director General Cosmas Ngeso said that the authority will not renew the license until a number of complaints against Bolt are addressed.
Non-complinace of set regulations and protocols
According to Ngeso, NTSA had been informed of some complaints filed by drivers and their representatives on allegations of non-compliance and violations to the provisions of Transportation Network Companies (TNC), Owners, Drivers and Passengers.
The regulation is meant to ensure that online taxi service providers do not charge their drivers more than the 18 per cent commission. As another provision, it prohibits taxi-hailing apps from levying the booking fees on drivers alongside the commission.
To address the complaints raised, Bolt, formerly known as Taxify, has been urged to provide a clear plan of action, detailing the steps the company is prepared to take to redress the situation. NTSA has directed that Bolt ceases with the said booking fee and adheres to the law henceforth. NTSA also advocated for Bolt to communicate to drivers and representatives of drivers, among other affected parties, addressing their concerns while striving for a mutually beneficial outcome.
Bolt’s response
In a communication directive, Linda Ndung’u, Bolt’s country manager, informed the media that the firm had been fully compliant with the rules governing its operations in the country. Ndung’u also stated that the company is making moves for the renewal of its operational license, which is expected to expire in two weeks.