NTSA To License Digital Hailing Firms

The National Transport and Safety Authority (NTSA) has given current and prospective digital taxi-hailing firms 14 days to apply for licenses as Transport Network Companies.

The move follows a collaborative sensitization workshop organized by the Ministry of Transport, Infrastructure, and Public Works for all relevant stakeholders. According to NTSA, the workshop sought to establish a roadmap for the implementation of the Transportation Network Companies(TNC), drivers and passengers Rules 2022 which were gazetted on June 20 and effected on 20^th September 2022.

The Transport Network Companies Licence Application Form and the Transport Network Companies, Drivers and Passengers Rules, 2022 are available for download on the NTSA website. The hailing firms are required to deposit their applications at the Authority’s Head Office Registry, 316 Upper Hill Chambers, 9th Floor, Second Ngong Avenue.

NTSA seeks to license digital hailing firms just as they do with matatus and buses to streamline the sector.

The regulations gazetted on June 20, 2022, by NTSA require that transport network companies and transport network service providers be licensed before their apps can be used in the country. The regulations warned that ride-hailing apps that will not have obtained a license by September 18 will be inaccessible to drivers and passengers.

The move received critics from the ride-hailing firm uber, with the firm moving to court seeking orders to quash the regulations.

In the case filed before the High Court, Uber argued that the requirement for firms offering transport through mobile apps to apply for a transport network license is illegal as it lacks parliamentary approval. Uber further argued that the regulations were not subjected to public participation, adding that NTSA did not follow the law in developing the new regulations.

“Given the first respondent failed to ensure that a copy of the regulations was transmitted to the responsible clerk for tabling before the relevant House of Parliament within seven sitting days after their publication on or before June 27, 2022. The regulations ceased to have effect immediately after June 27, 2022, and are consequently null and void.”

Uber noted that its services only enable the transfer of booking information between the driver and the passenger adding that the new regulations “erroneously assume” that it is a transport company that owns vehicles.