Bolt
Kenya has announced the suspension of its 5% booking fee, pending clarification
from the National Transport and Regulatory Authority (NTSA). This move comes in
the wake of ongoing disputes between Bolt and the NTSA over the renewal of its
operating license in the country.
The
NTSA had previously rejected Bolt's license renewal application, citing
concerns about illegal commission charges and booking fees, among other alleged
issues. In response, Bolt has taken the step of suspending the booking fee to
facilitate a better understanding of the regulatory interpretation in this
particular matter.
Notably,
Bolt has emphasized that its commission structure adheres strictly to the
regulatory requirement, capping at 18%. The company has expressed its
unwavering commitment to operating within the bounds of the law and ensuring
full compliance with the legal framework. Bolt also remains dedicated to
collaborating closely with the regulator to ensure a successful resolution to
the ongoing disputes.
In
a statement released by the taxi-hailing company, it is clarified that its
operations in Kenya remain uninterrupted, despite the license renewal concerns.
Bolt argues that its current license is legally valid under Section 32(4) of
the NTSA Act, which allows operations to continue until the license application
process is officially determined. The Act specifies, "If on the date of
the expiration of a license…proceedings are pending before the Authority on an
application by the licensee for the grant of a new license, the existing
license shall continue in force until the application is determined.”
The
renewal process is currently in progress and is expected to be finalized by
Monday, October 30, 2023, as per a letter from the NTSA to Bolt.
A
key issue in the license renewal process has been the contentious 5% booking
fee, which Bolt has temporarily suspended in a bid to appeal for a favorable
outcome. This fee was introduced in response to a directive from Kenya's
Ministry of Transport in November 2022, which required all e-cab companies to
reduce their commission to 18%, slightly lower than their standard 20% charge.
Booking fees, paid by customers, served as a means for taxi-hailing companies
to navigate the reduced percentage.
Bolt
explains that the booking fee covers support and enhanced technological
features that ensure a more efficient service on their platform. It's worth
noting that Uber, another prominent player in the Kenyan ride-hailing industry,
charges a higher booking fee, defending it as a means to cover taxes, including
VAT, as mandated by law.
By: Kanto Okanta
