Kenya’s National Transport and Safety Authority (NTSA) renewed Bolt Kenya’s operating license after weeks of uncertainty and disagreements. Bolt suspended its 5% booking charge yesterday to show its commitment to fixing the issue.
Bolt explained that the additional 5% booking cost was on riders, not drivers, but the NTSA postponed its licence renewal due to worries that the company was charging more than 18% in commissions.
Bolt is optimistic after the license renewal. Country Manager Linda Ndungu said, “We are happy to receive the renewal of our operating licence from the NTSA after collaborative dialogue between key stakeholders in the industry. This success shows our dedication to offering drivers viable earning possibilities on our platform and trustworthy and cost-efficient services to our customers.”
It also reinforces our commitment to platform security for all users. This renewal confirms our status as a trusted and compliant ride-hailing company.
The ride-hailing company can now operate legally after renewing its licence.
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Bolt Kenya’s opponents face issues.
Bolt isn’t the only ride-hailing service with a booking fee. Uber does, too, and their license renewal is due.
Bolt’s license was renewed by the NTSA, which will not sit well with Little, one of Bolt’s main rivals in the Kenyan e-hailing market. Its CEO stated on LinkedIn that Bolt was unlicensed. He informed them, but Bolt hadn’t renewed its license by the deadline. He was furious Bolt worked in Kenya without a license.
Bolt Kenya stopped its 5% booking charge recently while seeking information from the National Transport and Regulatory Authority (NTSA) about its licence renewal. The e-hailing company’s license renewal with NTSA had been disputed for years.
The NTSA had turned down the license before because, among other things, they were worried about illegal commission charges and booking fees.
Bolt said in a statement that it was committed to following the rules set by regulators. The company said again that its commission structure stayed within the 18% limit and promised to work closely with officials to find a solution that works.
“We want to reaffirm our unwavering dedication to following the law and making sure that all of our operations are in line with the law.” We’re still committed to working closely with the government to get things done right.
