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NTSA seeks views on digital taxis commissions cap

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Digital taxi operators during a past strike over commissions in Nairobi. FILE PHOTO | NMG

The National Transport and Safety Authority (NTSA) is engaging the public as it moves to cap commissions paid by drivers to digital taxi operators at 15 percent.

NTSA, which is mandated to regulate the public transport sector, is currently conducting the forums in major towns across the country including Malindi and Eldoret.

The planned commission caps will apply to firms such as San Francisco-based taxi e-hailing giant Uber, Estonia’s Bolt and local firm Little.

Capping of the commission is set to be in favour of the taxi partners who have for a long time decried the charges, terming them unsustainable.

The authority’s plan is contained in the latest proposed laws that are set to govern and bring about a raft of measures meant to streamline the local digital taxi hailing subsector.

Currently, Uber, Bolt and Little platforms charge 25, 20 and 15 percent of the ride value or fare, respectively.

Bolt, formerly Taxify, increased the partner commission fee from 15 percent to 20 percent in September last year while Little’s Corporate service also increased the charges to 19 percent a fortnight ago after citing growing operating costs.

NTSA has further proposed that the digital hailing service operators be barred from making any additional levies above the commission.

The move to cap the commission follows frequent driver industrial actions for the last three years where they have decried the fees and termed them extortionate.

“No digital hailing service operator shall charge a commission of more than fifteen percent per trip,” a section of the proposed regulations says.

“Digital hailing service operators are prohibited from levying or charging other charges, levies or fees over and above the commission.”

The firms will also be required to pay Sh500,000 fee for digital hailing operator services, while drivers using the apps will pay Sh1,500 for digital hailing service vehicle licence and Sh500 for renewal.