The National Transport and Safety Authority has refused to renew the operating license of Bolt, a taxi-hailing giant, citing alleged violations of regulations.
The Estonian company, which applied for renewal days before its expiration, now faces a critical challenge in its operations in Kenya. The NTSA said Bolt has been charging illegal commissions and an unapproved booking fee, sparking complaints from drivers and their representatives.
Bolt has also failed to comply with the Transportation Network Companies (TNC), Owners, Drivers, and Passengers Regulations, 2022, according to the NTSA. Cosmas Ngeso, the deputy director and head of licensing at NTSA, told Bolt’s country manager, Linda Ndungu, that the company must address these issues if it wants to continue operating in Kenya.
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Bolt said it has been following the regulations and is working on the renewal process before the license expires.
The denial of license renewal comes at a crucial time for Bolt, which was planning to invest more in the local market. The setback not only affects its growth plans but also shows the strict regulatory environment for the transport network industry in Kenya.
The outcome of this dispute could have implications for the ride-hailing sector in Kenya. It could signal a stricter enforcement of compliance for other players in the industry or lead to a re-evaluation of existing regulations.
The clash between Bolt and the NTSA highlights the balance between innovation and regulation in the sharing economy. Stakeholders will watch for the resolution of this conflict and its potential impact on the tech-driven transportation sector in Kenya.
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