Amid the ongoing furore about the refusal of the Kenyan authorities to renew its operating license, Bolt Kenya has expressed optimism that the situation would be resolved before the October 28 expiration of its current operating license.
Technext reported earlier that the National Transport and Safety Authority (NTSA) of Kenya denied the e-hailing company’s application to renew its Transport Network Company license. The authority cited illegal commissions and booking fees as the major reasons why it was denying the company a new license for the next year.
But in response to a Technext query, the Country Manager for Bolt Kenya, Linda Ndungu told Technext that her company never faulted the regulatory requirement on commissions. According to Linda, Bolt has stuck with the 18% commission as prescribed by the Kenyan transportation regulator.
She, however, admitted that the company also charged a booking fee that is payable by the passengers.
“Bolt has been fully compliant with the stipulated regulation to cap its commission rate at 18% for drivers using our application. To ensure efficiency on our platform and the continued innovation and enhancement of our technological features, Bolt charges a fixed percentage booking fee that is paid by the passenger,” she explained.
She, however, did not state the exact percentage charged for the booking fee.
Similar read: Nigerian man reportedly beaten to coma for assaulting female Bolt driver in Kenya
Background to the Bolt Kenya license renewal story
Following protests by drivers on the Uber and Bolt platforms back in September 2022, there were calls from major stakeholders in the Kenyan e-hailing space for government interventions. Subsequently, Kenya’s transport regulator, the NTSA was charged with the responsibility of regulating the space.
To that end, the Transportation Network Companies (TNC), Owners, Drivers and Passengers Regulations, 2022 was established.
Part of the regulatory process was that the transport network companies or e-hailing app companies (i.e. Bolt, Uber etc.) would obtain a license which would be renewable every year, only on condition that the companies do not violate the provisions of the regulation.
The new regulation also stipulated that ride-hailing apps must not charge commissions that are above 18 per cent of the total fare. Prior to the stipulation, the commission charged was 20 per cent. The sum faced incessant protests from drivers.
The new regulation also stipulated that ride-hailing companies must not charge booking fees. Under the provisions of the new regulation, Bolt applied for and obtained a Transportation Network Companies (TNC) license on October 28, 2022.
With the license set to expire on October 28, 2023, Bolt applied for a renewal and its application is being denied.
According to the Acting Director General of the NTSA, Cosmas Ngeso, the NTSA received a lot of complaints as well as pieces of evidence from drivers and their representatives accusing Bolt of violating the provisions of the regulations.
“The most pressing concerns are in relation to commission charges and an illegal booking fee which has caused significant concern amongst the driver community,” he said.
Ngeso also said there was substantial evidence that Bolt Kenya was charging commission rates that were higher than the approved 18 per cent. He also said that there was evidence the company had imposed an unauthorized booking fee.
According to him, this is in violation of sub-regulation (2) (g) of the TNC regulations.
In light of the above, he asked the company to provide the NTSA with “the breakdown of the commission rates currently in effect, highlighting specific instances where rates exceed the regulated 18 per cent and a thorough explanation of the rationale behind the commission structure.”
Bolt’s justification of the booking fee
While denying that it charged drivers a commission above the approved 18 per cent, the Country Manager, Linda Ndungu, admitted that Bolt charged a fixed booking fee. She, however, stressed that this was to ensure the efficiency of the platform.
In addition, she said that the fee isn’t being paid by the drivers.
“To ensure efficiency on our platform and the continued innovation and enhancement of our technological features, Bolt charges a fixed percentage booking fee that is paid by the passenger,” she told Technext.
While it appears it indeed contravened the provision of the regulation, the regulation isn’t clear on what an authorised booking fee is.
The Country Manager, however, said the company still had a valid licence and is fully operational. She also said that they will continue to work closely with the regulating body for a fruitful resolution of the ongoing annual licence renewal process,
Linda also said the company is excited about its 100 million euro investment into the Kenyan market to further increase its footprint across the country by expanding its services into more cities and town centres.
“Ultimately, we remain confident that we will continue to provide affordable and convenient services for passengers across the country whilst simultaneously providing earning opportunities to many Kenyans,” she finished.
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