Some aspects of the new digital taxi-hailing regulations are unconstitutional, discriminatory, discouraging to foreign investments, and violate the rights of its riders and partners, according to an appeal filed by the ride-sharing company.
The regulations, which are set to come into effect in a few weeks, have been in the works since 2016 when drivers protested a reduction in their commute prices.
The decision to cap commission charged per ride at 18% and evaluate pricing structure is being challenged by the ride hailing company. The new rate will cause the company to lower its service fee by 28%.
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According to the company, ride-sharing companies have the right to negotiate commercial agreements without being influenced by outsiders. The regulations were made without following due process.
The new law by the Ministry of Transport and Infrastructure has the potential to stifle innovation and reduce the economic feasibility of investing in the market.
VAT regulations and digital service tax regulations are currently being finalized by the revenue authority. The proposed cap in the commission will have an adverse impact on the prioritization of investments in the Kenyan market.
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It was not a transport service but an app that needed to be licensed by the NTSA according to the company.
The regulations only allow people with personal identification numbers to get a license. Entities that are legally registered in the country will be eligible for the permit. Bolt and Little are required to give drivers and riders data when requested by the authority. This would be a violation of the new data protection act.
The head of communications for the company in East and West Africa said that there was no plan to stop operations in the country.
We are committed to ensuring that more drivers and riders are able to use ride hailing.
She said that the commission reduction and requirement for companies to be registered in the country are not good for drivers or riders as they deter foreign investment into the country and limit the role private businesses can have.
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