NAIROBI, Kenya – Bolt drivers in Kenya are bracing for reduced earnings after the ride-hailing platform announced it would pass the 16% value-added tax (VAT) onto them, a move tied to the government’s VAT (Electronic, Internet, and Digital Marketplace Supply) Regulations of 2023.
The decision has already raised concerns among drivers who have long complained about declining incomes and high platform commissions.
According to Bolt, the VAT obligation stems from its commission, which will now be taxed at the statutory rate of 16%.
The company asserts that this shift aligns with guidance from the Kenya Revenue Authority (KRA) and the National Transport and Safety Authority (NTSA).
For over 15 months, Bolt says it absorbed the VAT costs to shield drivers from immediate financial impacts.
However, the company now argues that regulatory clarity necessitates the tax burden shift.
“Our focus remains on compliance, fairness, and sustainability,” said Dimmy Kanyankole, General Manager for Bolt Kenya and Tanzania. “We are committed to supporting our drivers through this transition by creating awareness and providing opportunities to help them maximize their earnings.”
Drivers have expressed dissatisfaction with the platform’s pricing policies and commissions.
Bolt and Uber have faced mounting criticism since entering the Kenyan market in 2016 and 2015, respectively, for what drivers describe as exploitative practices.
Last year, drivers staged two demonstrations to protest the commission rates deducted by ride-hailing platforms.
While Bolt and Uber recently raised fares—by 10% and 20%, respectively—drivers argue these adjustments fall short of compensating for increased operating costs, including soaring fuel prices.
In recent months, some drivers have resorted to renegotiating fares directly with customers or using alternative price lists, bypassing app-displayed rates.
Kenya’s ride-hailing market has become increasingly competitive, with companies like Little App also adjusting prices amid pressure from drivers.
In June, Little App announced a 15% fare increase, following similar moves by Uber and Bolt.
The VAT adjustment is expected to intensify tensions between drivers and platforms, particularly as drivers’ earnings are squeezed further.
Bolt defends its decision as a necessary step toward compliance within Kenya’s evolving digital economy.
However, the platform faces the challenge of balancing regulatory obligations with drivers’ concerns over fair compensation, a problem that could lead to renewed protests or shifts toward alternative ride-hailing services.
For drivers, the VAT adjustment represents another hurdle in an already challenging economic environment, where operational costs and platform fees continue to erode their earnings.
