Kenya’s National Transport and Safety Authority (NTSA) has officially renewed Bolt Kenya’s operating license, ending weeks of uncertainty and disputes. Bolt took a proactive step by suspending its 5% booking fee in an effort to resolve the issue.
The additional 5% booking fee was levied on riders, not drivers, but the NTSA delayed the license renewal due to concerns that the company was charging more than the legal limit of 18% in commissions.
Linda Ndungu, Country Manager for Bolt Kenya, expressed the company’s excitement and commitment to providing earning opportunities for drivers and cost-efficient services to customers. She mentioned that Bolt is committed to ensuring a secure platform and meeting regulatory requirements.
With the license renewed, Bolt can continue offering its services while adhering to the regulatory framework. It’s worth noting that other ride-hailing platforms like Uber also charge riders a booking fee, and their license renewal status remains pending.
Understanding the Core Problem
The NTSA’s actions against Bolt are linked to Bolt’s alleged failure to comply with the 2022 Transportation Network Companies (TNC), Owners, Drivers, and Passengers Regulations. These rules, which were introduced on June 20, require transport network providers and companies to obtain licenses before using their apps in the country.
Those who didn’t apply for a license by September 18, including both drivers and passengers, were unable to use Bolt’s services. To address this, the NTSA granted taxi-hailing companies a 14-day window, starting from October 14, to submit their license applications as Transport Network Companies.
Despite Bolt’s efforts to renew its operating license, the NTSA rejected their request, citing non-compliance issues. Bolt, on the other hand, maintains that they fully adhere to all of the NTSA’s regulations and licensing requirements.
However, Bolt’s suspension of the fee was part of its efforts to seek clarity from the National Transport and Regulatory Authority (NTSA) regarding license renewal. The company is determined to comply with regulatory requirements and collaborate closely with regulators to resolve the situation.
