Online taxi drivers on Wednesday suffered a huge blow in their push for better commission after the government declined to intervene.
Labour CS Ukur Yatani and Competitions Authority of Kenya director general Wang'ombe Kariuki said it was not within the purview of government to set pricing for the firms.
Yatani said that US-based Uber, Bolt (formerly Taxify) and locally-based Little Cab are not transport companies and thus there was no contractual agreement between the firms and the drivers agitating for higher rates.
“These are not transport companies. They do not own or operate any vehicles. What is there is a private contractual agreement between the owners of the car and drivers,” Yatani said.
The CS spoke when he appeared before the Senate Labour and Social Welfare Committee inquiring about the complaints of poor pay by the app companies.
“There is absolutely no relationship between the drivers and the companies and I believe the owners of these cars get enough money, but we should ask whether they also pay their drivers well,” he said.
CAK boss Kariuki said the authority's mandate was restricted on the dealing with the matter as it was not about competition.
“This is a contractual obligation and my mandate is restricted. It is a contractual obligation between car owners and drivers and if we get involved in it, then we will be violating our own law,” Kariuki told the committee.
He explained that none of the app companies controls more than 50 per cent of the market and therefore it is very unlikely that the car owners are being exploited.
But the committee chaired by Nairobi Senator Johnson Sakaja insisted that the government must play a role in protecting innocent Kenyans against unfair labour practices.
“So, what happens, because there is an appearance of collusion here to exploit the drivers? You are telling us that you are not protecting the drivers. I believe there is space for CAK to come in,” Sakaja said.
Yatani said the issue of exploitation was grave and pleaded for time to consult other stakeholders in the industry to protect the drivers.
The digital taxi drivers have gone on strike at least three times since 2016 protesting the low rates imposed by the companies.
Digital Taxi Association of Kenya secretary general Wycliffe Amtalalah said the rains started beating the drivers in 2016 when more taxi apps joined the Kenyan market.
“Initially, we only had Uber but in 2016, more firms came and Uber reduced prices from Sh60 per mile to Sh35 per mile,” he told the committee.
He explained several attempts, including signing an MoU with the stakeholders to address the problem, have failed to resolve the problem.
“We had a meeting where it was agreed that the fare is increased to Sh42. The National Transport and Safety Authority was supposed to facilitate quarterly meetings to ensure these problems do not recur,” he said.
Transport CS Esther Koimet said the ministry was in the process of reviewing transport to factor in the digital apps.
