Ride-hailing drivers in Kenya commenced a five-day strike action starting yesterday, with demands for better compensation and the elimination of value-added taxes on their earnings. On the first day of the strike, drivers gathered to demonstrate at the offices of the National Transport and Safety Authority (NTSA).
Their protest follows a directive issued by the government ten months prior, which mandated ride-hailing services like Bolt and Uber to cap their commissions at 18%. The striking drivers are seeking to have a say in the pricing strategies of Uber and Bolt, contending that they are responsible for various operational costs, including insurance and parking fees, which significantly impact their net earnings.
Zakaria Mwangi, representing the Digital Taxi Association of Kenya, pointed out the disparity between the drivers, who shoulder these expenses, and the ride-hailing platforms, which set the fares for rides.
Additionally, the drivers are voicing their opposition to the tax deductions practice. Under the current system, the ride-hailing apps deduct an 18% commission from the fares and then proceed to deduct taxes from the drivers’ take-home pay. It should be noted that these taxes are forwarded to the government and are not kept by the companies.
During a meeting in Nairobi on the preceding Sunday, the drivers resolved to stop shouldering business-related costs and accused the ride-hailing app companies of securing their profits at the drivers’ expense.
Bolt acknowledged the drivers’ right to strike and expressed a commitment to continued dialogue with them, yet refrained from directly addressing the specific concerns raised about commissions. Uber, for its part, recognized the ongoing strike and expressed its intention to reduce any service interruptions that might result from the drivers’ actions.
At the heart of the dispute is the classification of drivers as “driver partners” rather than employees, a distinction that grants the ride-hailing companies significant control over the drivers’ potential earnings. This situation underscores the broader challenges and vulnerabilities associated with gig economy work, where workers often lack the protections and benefits typically afforded to traditional employees.
