Bolt maintains that it has a valid licence and continues to operate, expressing its commitment to a fruitful resolution of the ongoing annual licence renewal process.
Bolt Kenya has temporarily suspended its 5% booking fee as it seeks clarification from the National Transport and Regulatory Authority (NTSA) regarding its licence renewal. This development follows an ongoing dispute with NTSA over the renewal of the e-hailing company’s licence.
The authority had previously declined to renew the licence, citing concerns over illegal commission charges and booking fees, among other allegations. Bolt’s decision to suspend the booking fee aims to provide clarity on the interpretation of these regulations.
In a statement released today, 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
In light of these developments, Bolt has continued its operations in Kenya, asserting the legality of its current licence under Section 32(4) of the NTSA Act. This section allows the existing licence to remain in force until the application for a new licence is officially determined. The license renewal process is ongoing, with a completion date expected by today, Monday, October 30, 2023, as indicated in a letter from NTSA to Bolt.
It is yet to be ascertained if Bolt would re-introduce the 5% booking fee, if it would receive the licence soon, or if it could come to an agreement with the regulator which had earlier directed it to stick to the 18% commission cap.
Bolt Kenya finally yields amidst uncertainties
A few weeks ago, Bolt Kenya expressed optimism that the ongoing dispute over the renewal of its operating licence would be resolved before the October 28 expiration date of its current licence. NTSA had denied Bolt’s application to renew its Transport Network Company licence, citing concerns over illegal commissions and booking fees as the main reasons for the denial.
An exchange of correspondence between NTSA’s Deputy Director and Head of Licencing, Cosmas Ngeso, and Bolt Kenya Country Manager, Linda Ndungu, revealed the forthcoming action. The Deputy Director said unless Bolt addressed the alleged breaches to the satisfaction of the NTSA, the company faces the imminent loss of its transport network company operator licence by the end of the month.
“Please note that the Authority is not able to proceed with the renewal of your operator licence until the issues raised by drivers and their representatives are satisfactorily addressed and rectified,” said Mr. Ngeso in the letter to Bolt on behalf of NTSA director-general George Njao.
However, Bolt’s Country Manager, Linda Ndungu, clarified that the company had followed the regulatory requirement of an 18% commission rate but also charged a booking fee paid by passengers.
Following protests by drivers on the Uber and Bolt platforms in September 2022, the Kenyan government charged the NTSA with regulating the e-hailing space. This led to the establishment of the Transportation Network Companies (TNC), Owners, Drivers, and Passengers Regulations, 2022. This regulation requires ride-hailing apps not to charge commissions exceeding 18% of the total fare. Bolt applied for and obtained a Transportation Network Companies (TNC) licence on October 28, 2022, with the licence expiring on October 28, 2023, some days ago.
NTSA Acting Director General Cosmas Ngeso said the Authority received complaints and evidence of Bolt violating regulations. While Linda Ndungu denied that Bolt charged drivers a commission above the approved 18%, she acknowledged charging a fixed booking fee to ensure platform efficiency.
Regarding this, the regulator, NTSA, demanded Bolt clarify its commission structure, cease alleged illegal booking fees, and ensure strict compliance with regulations limiting commissions to 18% and prohibiting booking fees for it to renew its licence.
With the latest development, it now seems Bolt has yielded to the demands of the Commission and suspended the booking fee plans. However, it is yet to be ascertained if the company has received assurance it will receive the licence or if it will be allowed to set a booking fee in the future.
Despite potential contraventions, Bolt maintains that it has a valid licence and continues to operate, expressing its commitment to a fruitful resolution of the ongoing annual licence renewal process. Bolt also announced a €100 million investment in the Kenyan market to expand services into more cities and town centres while providing earning opportunities to Kenyans.