New Competition Bill Targets Uber, Bolt Over Unfair Fare-Setting Practices in Kenya

Drivers on ride-hailing apps like Uber and Bolt could be in for a big surprise on the fare-setting and commission structures - thanks to brand new competition rules aimed at curbing powers that big players are muscling in on Kenyas digital economy.

New Rules of the Game

The government has come up with a new legislative framework that's designed to retrict the powers for online platforms that take advantage of businesses that are stuck on using them. This includes things like unilateral price cuts, dodgy commercial terms or forcing small businesses onto trading conditions that are just plain unfair.

The Competition (Amendment) Bill of 2026 is expected to give ride-hailing companies regulations allowing drivers more say, following years of disputes over fare reductions and commission structures that have been dipping onto driver earnings.

The Defining Lines

The Bill introduces a new concept called "strategic market position", which sounds while sounds plain but basically boils down to when a company has so much influence over the market that they can pretty much dictate the pace. To work out if this is the case, the Competition Authority of Kenya will be looking at things like how big the company is, how much data they control, how easy or hard it is to switch from one platform to another, and how much money the platform is making.

The War Over Fares

A bit of a price war between Uber, Bolt and some local start-ups has driven fares down to the point where many drivers reckon they're just not worth it - leading some to rebel against the algorithms and set their own rates. Kenya, Nigeria and Tanzania are all big markets for Uber, and drivers have repeatedly accused the multinational tech firms of using algorithms to set fares in ways that benefit the platforms, not the drivers.

Who Holds the Cards?

The Bill introduces a new idea called "superior bargaining position", which is all about how companies can use their economic power to strong-arm their trading partners even if they don't have a massive market share. Under the Bill, someone has a superior bargaining position if they're able to create imbalances in the commercial relationship that make it impossible for their trading partners to find an alternative.

Why Change the Rules?

The Director-General of the Competition Authority, David Kemei, told the Finance and National Planning Committee that digital platforms have created a whole new kind of market power that's not being addressed by current law. He said, "The way these big digital platforms have taken over the market has created all sorts of risks - like unfair trading practices, economic dependence, exclusionary conduct, and barriers to getting into the market in the first place."

We're Not Alone Here

The framework being proposed is not a one-off - we're seeing similar approaches being used in other major jurisdictions. European regulators have relied on similar ideas to regulate big players like Google, Apple and Meta, and it's led to some big fines for practices like self-preferencing and anti-competitive restrictions.

Getting Tough on Abuse

The proposed changes would give the authorities a lot more power to take action against companies that are abusing their market position - with fines of up to Sh10 million, imprisonment for five years, or both, on the cards for anyone found guilty of unfair trading practices.

More Government Action on the Way

These reforms come at the same time as the Ministry of Roads and Transport is introducing a minimum compensation per trip for ride-hailing drivers and motorcycle operators - which is likely to ruffle a few feathers with the tech companies who are just used to getting their own way.