This archive report was first published on 8 August 2019.
Published on August 8, 2019, the State has dealt a blow to digital taxi drivers in their push for better pay.
Labour Cabinet Secretary Ukur Yatani and Competition Authority of Kenya (CAK) Director General Wang'ombe Kariuki said the State does not have a mandate to set prices for digital taxi firms.
According to Mr Yatani, the companies are not transport firms but rather private contractual agreements between car owners and drivers. He stated, '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 cars and drivers. It has nothing to do with the apps.'
Mr Kariuki added that the issue is not about competition, as none of the app companies controls more than 50 per cent of the market. However, the Senate Labour and Social Welfare Committee chair, Johnson Sakaja, disagreed, stating that the State must play a role in protecting Kenyans against unfair labour practices.
Taxi drivers using the cab-hailing app have downed tools at least three times since 2016 over the low rates imposed by the companies.
