Kenya's High Court has blocked enforcement of an 18 percent cap on ride-hailing commissions pending a one-year regulatory reset. The court also suspended requirements that digital taxi platforms retain detailed passenger and driver records for three years and surrender them to the National Transport and Safety Authority on demand. The decision stems from a petition filed by Bolt Operations OU and carries implications for Uber, Little Cab, and other market players.
A Controversial Price Control Is Suspended
The commission ceiling was introduced in 2022 after ride-hailing drivers protested charges that had reached about 25 percent or more. Justice Florence Muigai Aburili found that the government had not produced empirical evidence to show why a fixed 18 percent limit was necessary or proportionate. The court ruled that the restriction violated constitutional protections for property and contractual autonomy because it interfered with private agreements without adequate justification.
Data Retention Requirements Raise Privacy Concerns
Regulation 17 required platforms to store trip and payment details for three years and provide them to NTSA whenever demanded. The court found that this rule infringed the right to privacy under Article 31 and violated principles of the Data Protection Act 2019. Justice Aburili said the measure created a regime of continuous surveillance because it compelled private companies to serve as custodians of extensive movement data.
Procedural Flaws and Government Obligations
The High Court also identified problems with the manner in which the 2022 regulations were introduced. The rules were gazetted while Parliament was in recess, and enforcement began before the required legislative scrutiny was completed. During the 12-month suspension, the government must conduct fresh public participation, complete a regulatory impact assessment, and align the regulations with the Constitution and enabling legislation.
Implications for Drivers and Passengers
The ruling does not compel Uber, Bolt, or other operators to raise their commission rates. It removes the government's ability to enforce this particular ceiling while the suspension lasts. Recent consumer research shows that 59 percent of Nairobi ride-hailing users opposed a proposed minimum fare, while 63 percent preferred fares shaped by competition rather than government control.
County and National Roles Clarified
The court also addressed the constitutional division of transport responsibilities between county and national governments. Counties retain authority over local transport services, including taxis and parking, while the national government oversees safety standards and policies that cross county boundaries. This distinction matters as platforms such as Bolt expand into Mombasa and integrate tuk-tuks and delivery riders into local transport systems.
The Road Ahead for Regulators
The court preserved the broader regulatory framework to avoid destabilizing the transport sector. Existing safety and driver verification requirements will continue to apply while the state works to correct the defects. Policymakers will need credible economic evidence for any future commission limit and stronger safeguards for personal data collected by digital platforms.
Kenya now has a 12-month window to rebuild the ride-hailing rules without leaving the market completely unprotected. Safety standards, driver verification, and other operational provisions remain enforceable during the suspension period. A durable framework will depend on whether policymakers can justify economic controls while respecting privacy rights, contract freedoms, and the overlapping roles of national and county governments.