Kenyan Government Announces New Rules for Taxi-Hailing Firms

February 5, 2020

The Kenyan government, through the Ministry of Transport, has announced new rules for digital taxi-hailing firms.

Transport CS  James Macharia announced the rules on Tuesday, stating that digital taxi owners will now be required to acquire three-year renewable licences to continue operations.

All international digital taxi firms are required to pay an application and renewal fee of Sh500,000. Drivers on other hand will have to part with Sh500 for application and renewal of digital hailing service driver badge.

Only firms that are legally recognised in Kenya and have a valid binding agreement between the operator and the vehicle owner are viable for a licence.

Additionally, any person applying for a licence for a digital hailing service vehicle must have a tax compliance certificate from KRA, a standard form of contract between the driver and the owners of the vehicle and a certificate of registration as a body corporate.

“A digital hailing service operator must ensure that any vehicle whose digital hailing licence is suspended or revoked by the authority, cannot access the digital hailing platform during the period of suspension or revocation upon communication from the authority,” Macharia said.

The CS added that owners of the firms must ensure that all vehicles under the digital hailing service platform have valid insurance covers. He said all vehicles must have a valid certificate of worthiness affixed at the back.

Moreover, before commencing a trip all taxi drivers must provide their passengers with information about the vehicle make and model, registration number, driver’s name photo and the estimated fare rates.

In the new rules, drivers are also prohibited from working for more than eight consecutive hours in one day.

On commission limitation, operators should not charge a commission of more than 15 percent per trip or levy charges above the commission.

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