Bolt Kenya finally gets licence renewal after 5% booking fee reversal

After weeks of uncertainty and disputes, Kenya’s National Transport and Safety Authority (NTSA) has officially renewed Bolt Kenya’s operating licence. This development comes after Bolt, in a proactive move yesterday, suspended its 5% booking fee, thus demonstrating its commitment to resolving the issue.

Although Bolt clarified that the additional 5% booking fee was levied on riders, not drivers, the company encountered challenges when the NTSA delayed its licence renewal, citing concerns that the company was charging more than the legal limit of 18% in commissions.

Bolt is now looking ahead with optimism following the licence renewal. Linda Ndungu, Country Manager, expressed the company’s excitement, saying, “We are happy to receive the renewal of our operating licence from the NTSA after collaborative dialogue between key stakeholders within the industry. This accomplishment reflects our ongoing commitment to providing viable earning opportunities to drivers on our platform and providing reliable and cost-efficient services to our customers.”

“It also reaffirms our steadfast commitment to ensuring a secure platform for all users on our platform. We have consistently worked towards meeting the necessary regulatory requirements, and this renewal attests that we continue to be a trusted and compliant player in the ride-hailing sector.“

Linda Ndungu, Country Manager

With the renewal of its licence, the ride-hailing company is now poised to continue offering its services while ensuring compliance with the regulatory framework.

Read also: Bolt Kenya suspends 5% booking fee amidst licence renewal concerns

Bolt Kenya’s competitors face challenges still

It’s worth noting that Bolt is not the only ride-hailing platform charging riders a booking fee, as Uber employs a similar practice, and their licence renewal status remains pending as well.

As the NTSA renews Bolt’s licence, one company that will not be happy about this is Little, one of the main competitors in the Kenyan e-hailing space. Its CEO took to LinkedIn to complain that Bolt was operating without a licence. When he complained about this, Bolt was yet to get its licence renewed, and the deadline was already past. He wasn’t happy that Bolt was still operating in Kenya without a licence.

Recall that yesterday, Technext reported that Bolt Kenya temporarily suspended its 5% booking fee as it sought clarification from the National Transport and Regulatory Authority (NTSA) regarding its licence renewal. The development followed a longstanding dispute with NTSA over the renewal of the e-hailing company’s licence.

The NTSA had previously declined to renew the licence, citing concerns over illegal commission charges and booking fees, among other allegations.

In a statement, Bolt emphasised its commitment to complying with regulatory requirements. The company reaffirmed that its commission structure adheres to the stipulated 18% cap and pledged to collaborate closely with regulators to ensure a successful resolution.

“We want to reaffirm our unwavering commitment to operating within the bounds of the law, ensuring that our operations fully align with the legal framework. We remain committed to collaborating closely with the regulator to ensure a successful outcome.”

Bolt