Regulators should not be a stumbling block to innovation

Nairobi and Mombasa, like many other African cities, are well positioned to fully achieve smart city status. With transportation, for example, the power of technology and collaboration is vital in building the transport systems of the future. The Transport ministry and the National Transport and Safety Authority has recently reinforced this sentiment in their plans to develop a legal framework for the regulation of certain aspects of ride-hailing companies’ operations.

These draft regulations have the potential to bring several benefits to the industry. However, for this to happen, the policy framework should support innovation and business growth. While Uber is supportive of positive regulation, we are particularly concerned about a clause proposing a 15 per cent commissions cap. If it comes into law, it would make it the most restrictive cap in the world, while adding unnecessary barriers of entry for Kenyans for whom ridesharing presents a platform for accessing flexible earnings.