Saturday, May 18, 2024

Kenyan Government Enforces Digital Taxi Regulations for Taxi Hailing Companies

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Transport Cabinet Secretary Kipchumba Murkomen has assured taxi hailing operators and passengers that the government is keen on implementing the recently gazetted Digital Hailing Service Regulations (TNC Rules 2022).

Speaking during the launch of Yego Mobility, Murkomen said that drivers and owners of motor vehicles registered with the transport network companies shall not pay commissions exceeding 18 percent of the total earnings per trip moving forward.

The regulations that had been proposed by the National Transport and Safety Authority (NTSA) would, among other things, prohibit digital hailing service operators from charging a commission of more than 15 percent.

“I urge all current and aspiring applicants for transport network company licences to regard the stipulated requirements with utmost seriousness and comply with the Regulations without exception, as they are and will continue to be enforced rigorously,” he stated.

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The regulations mandate hailing businesses to pay a Sh100,000 yearly operational license charge and register with the Data Commissioner as a data processor or collector.

The online taxi companies must also sign transport network agreements with licensed drivers and owners of motor vehicles that specify the responsibilities of each party.

The companies will be responsible for supervising the cars and drivers that are part of their individual fleets and making sure that all of the above are in good working order.

“It is mandatory for a licenced transport network company to sign an agreement with the vehicle owner. Under the Regulations, the driver of the vehicle must hold a Public Service Vehicle (PSV) licence and must have subscribed to transport network services,” Murkomen noted.

It is also mandatory for the network company to follow regulations on subscription, activation, and deactivation of service.

The transport network company license, which is valid for one year, shall only be renewed subject to compliance with set regulations.

The National Transport and Safety Authority (NTSA) is also under an obligation to audit all transport network companies to ensure strict compliance with the law.

This comes days after Nairobi Governor Johnson Sakaja advocated for a boost in the wages of taxi drivers, whom he claimed are being paid too little by taxi hailing services.

Speaking at this year’s Labor Day celebrations at Nairobi’s Uhuru Gardens, Sakaja urged the Competition Authority of Kenya and other taxi industry participants to help the drivers, who, in his opinion, are receiving insufficient compensation for the excellent service they provide.

Samuel Musila
Samuel Musila
Passionate Software Developer and Tech content creator From Nairobi, Kenya

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