High Court Issues Ruling Banning Ride-Hailing Apps From Taking More Than 25% Commission

Thousands of boda boda and taxi-hailing drivers across Nairobi celebrated a court victory on Wednesday after the High Court upheld the regulatory framework that limits the commission Uber, Bolt and Little can deduct from drivers' earnings to a maximum of 25 percent per completed trip.

The ruling, delivered by Justice Chacha Mwita at Milimani Commercial Court, dismissed challenges filed by two of the three platforms against government regulations implementing President Ruto's May 2024 directive to the Ministry of Transport and NTSA to rein in what drivers had described as exploitative commission structures that had risen to between 30 and 45 percent on some platforms.

"The evidence before this court confirms that the previous commission structures were not merely commercial matters but impacted the livelihoods and welfare of a significant portion of Kenya's gig economy workforce in a manner that required regulatory intervention," Justice Mwita wrote in a section of the ruling that drivers' unions plan to frame and display.

Bolt Kenya issued a statement saying it was "reviewing the judgment with legal counsel" and expressing concern about "the commercial viability of operating at regulated commission levels in a market with high fuel and vehicle maintenance costs." Uber Kenya declined to comment. Little, the local platform partly backed by Telkom Kenya, said it already operated below the 25 percent cap and welcomed the ruling.

Driver associations are calling for phase two — regulation of the algorithm that determines which drivers get trip assignments, which they say is the second mechanism of platform control after commission rates. "Winning the commission fight is important. But the algorithm decides whether you get enough trips to make a living. That is the next battle," said Kenyan Online Taxi Operators chairman Waweru Muigai.