Day 1 Discussions: Digital Hailing Services Regulations

Thank you Ali, Kieti and Bill.

@Ali Hussein <> Indeed, we should regulate to grow the
sector, not to kill it. From the public participation, it looks like vitu
kwa ground is confusion/chaotic. The digital hailing service operators have
not been engaging car owners and the government.

These regulations have also capped commission. The operators are supposed
to charge commission to a cap of 15%. to protect the drivers from the
effects of competition between the companies. A question though; how did
the NTSA arrive at this percentage? Is it fair to cap profits? What are the
effects in the industry?

@kieti you raise very valid points. Taxing the vehicle owners and drivers
might not be timely. How about the multinationals? Because not imposing tax
on them also exposes local companies which are already paying taxes to
unfair competition.

@Bill Dian <>, ill through these questions to fellow

1.What does the Kenyan law say on employees and independent
contractors,with the disruption of traditional employment models?

2 The new regulations require digital service operators to operate under
Kenya laws,does Labor Laws apply?drivers have in the past complained of
lack of representation when deactivated,lack of consultations on price
fixing e.t.c?

3.What effect does the regulations have on Data protection,specifically
data retention .For instance,the regulations require operators to maintain
personal data for period of 3 years,will the operators be required to
obtain authorization from Data Commissioner,since they are Data controllers
and data processors?

4.What effect does the new regulations have on the model of the gig
economy?Does it rip off the independence and flexibility characterised by
the gig economy?

On Mon, Feb 10, 2020 at 11:26 AM John Kieti <> wrote:

> Hello,
> From the apparent justifications for the regulations, I think some issues
> are being conflated, unfortunately. I am thinking at least 3 issues exist
> and could be dealt with separately.
> 1. *Accidents and crime *- Might it help to broaden the regulations to
> cover normal offline taxis. If anything digital taxi-hailing provides
> increased possibility for passenger safety than normal taxis. It seems
> pointless to provide a fix for what is not really broken.
> 2.* Owners / Drivers / Operator feuding on commercials* – These ideally
> should be maintained as commercial leasing agreements (drivers with owners)
> and marketing service agreements (Drivers with operators). The
> employer-employee narrative misses the point on the platform economy where
> actors should be considered autonomous and responsive to the market forces.
> 3. *Tax evasion and revenue collection – *This seems to be the main
> thrust of the regulations. To check on tax evasion by operators – Uber,
> Bolt, etc is welcome and timely. Legal technicalities on tax avoidance will
> remain. To squeeze out more taxes and fees from drivers and vehicle owners
> is fair – not sure about timely – If it were me, I would let the gig
> economy grow roots first, for a couple more years.
> Kind regards
> On Mon, Feb 10, 2020 at 9:10 AM Liz Orembo via kictanet <
>> wrote:
>> Good morning listers,
>> Today we will talk about Digital Hailing Services Regulations and the
>> licensing of the Service Operators under part 1 of the regulations.
>> Looking at the document, it seems like the NTSA is trying to regulate the
>> industry following the recent incidents that have come up: eg accidents,
>> assisted crimes and digital taxi drivers woes. These regulations will
>> require any digital hailing services; Uber, Bolt, and Swivl, to register in
>> Kenya and operate under the Kenyan laws. They will also obtain operating
>> licences from the NTSA.
>> We would like to hear your views on this:
>> a. Are the regulations necessary?
>> b. Is NTSA the right/best body to regulate Digital Hailing Transport
>> Services?
>> c. What are the likely impacts in the transport industry, Information
>> Society Sector and gig economy? etc
>> d. Should multinationals be subjected to different licensing requirements?
>> Here are some resources to guide our discussions.
>> 1. Bolt, uber among taxi apps ordered to get licences or get off road.
>> 2. Can California reign tech-gig platforms? A primer on the bold state
>> law that will try.
>> Over to you listers.
>> —
>> Best regards.
>> Liz.
>> PGP ID: 0x1F3488BF
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> —
> John Kieti
> Phone: +254-735-764242 // +254-722-764242
> Twitter: @johnKieti // Skype: jkieti
> Blog: <> // LinkedIn:
>*kieti* <>
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