Uber, Bolt Drivers Set for Relief Under Proposed Competition Bill
Drivers who rely on ride-hailing platforms such as Uber and Bolt could soon enjoy stronger protections under proposed legislation that seeks to curb unfair pricing practices and prevent digital platforms from abusing their market power.
The proposed Competition (Amendment) Bill, 2026 aims to regulate powerful online platforms accused of imposing unfair commercial terms on businesses that depend on them. If enacted, the law could significantly reshape how ride-hailing firms determine fares, commissions and other conditions affecting thousands of drivers across Kenya.
The reforms come after years of complaints from drivers who argue that repeated fare reductions and high commission rates have steadily reduced their earnings while leaving them with little bargaining power.
The proposed law would give the Competition Authority of Kenya (CAK) broader powers to scrutinise companies that wield significant influence over markets, even if they are not classified as dominant under existing competition laws.
According to the Bill, companies with what it describes as a strategic market position could face stricter oversight where they are found capable of influencing prices, services, innovation or market conditions without meaningful competitive pressure.
How the proposed law could affect Uber and Bolt
The proposed legislation introduces new legal concepts aimed at addressing challenges created by the rapid growth of digital platforms.
Under the Bill, a company would be considered to have a strategic market position if it can influence prices, service quality, output or innovation independently of competitors, suppliers or consumers.
“A person has a strategic market position in a market if the person influences market prices, quality, service, output or innovation to an appreciable extent independent of competitors, suppliers, users or consumers,” the Bill states.
In determining whether a company holds such a position, CAK would examine factors including its presence across digital markets, access to user data, network effects, switching costs, financial strength and the extent to which businesses depend on its platform.
The proposed reforms are expected to bring ride-hailing companies under greater regulatory scrutiny following long-running disputes between drivers and platforms over fare structures and commission rates.
Drivers have frequently accused ride-hailing firms of using algorithms that prioritise company profits while reducing the income earned by those providing transport services.
The complaints have sparked repeated stand-offs, with some drivers choosing to negotiate fares directly with passengers instead of accepting prices generated by the applications.
CAK seeks stronger powers over digital platforms
Beyond regulating dominant firms, the Bill introduces another concept known as superior bargaining position, recognising that businesses can still exploit trading partners because of economic dependence.
Under the proposal, a company would be considered to hold a superior bargaining position where it creates an imbalance in commercial relationships and its business partners have few practical alternatives.
“A person has a superior bargaining position in a market if the person creates an imbalance in the rights and obligations relating to its commercial relations with a counterparty and the counterparty cannot find a viable and satisfactory alternative in the market,” the Bill says.
The Competition Authority argues that existing laws do not adequately address the growing influence of digital platforms, whose market power is strengthened by access to large volumes of user data, network effects and integrated digital ecosystems.
CAK Director-General David Kemei told Parliament that digital platforms have introduced new competition challenges that require stronger legal safeguards.
“The increasing prominence of large digital platforms has created risks associated with the concentration of market power, unfair trading practices, economic dependence, exclusionary conduct and barriers to market entry,” Kemei told the National Assembly’s Finance and National Planning Committee.
If passed, the amendments would allow CAK to develop binding codes of practice governing sectors where businesses are vulnerable to abuse of strategic market positions or superior bargaining power.
The regulator would also gain stronger enforcement powers, including the ability to impose penalties of up to Sh10 million, imprisonment of up to five years, or both, against individuals found guilty of abusing their market position.
The proposed reforms come as the Ministry of Roads and Transport separately works on introducing a minimum compensation framework for ride-hailing drivers and motorcycle operators, signalling broader government efforts to improve earnings within Kenya’s digital transport sector.
The Competition Authority says the flexibility offered by the amendments will enable regulators to respond quickly to emerging business models without requiring fresh legislation every time technology evolves.
The proposals also mirror reforms already introduced in major economies, particularly within the European Union, where regulators have taken action against large technology companies over unfair competition practices and the misuse of market power.
If approved by Parliament, the Bill could fundamentally change the relationship between digital platforms and the businesses that depend on them, giving drivers and other service providers stronger legal protections when negotiating fares, commissions and other commercial terms.
