MasiboLaw

By Meshack Masibo and Joy Kawira

When was the last time you took an Uber ride? Perhaps you were on a tight schedule and needed to work while on the move, or maybe public transportation wasn’t an option for you at that time. Regardless of the situation, you’ve likely used a ride-hailing app at least once in your life.

This trend has led to the emergence of numerous ride-hailing companies, both locally owned like Faras and Little Cab, and foreign-owned giants like Uber and Bolt. This dynamic industry presents a wealth of opportunities for those looking to venture into the transport sector in Kenya. 

If you’re considering a getting into the transport sector and have your sights set on providing ride-hailing services in Kenya, the first crucial step is obtaining a Transport  Network Operator (TNO) Licence from the National Transport and Safety Authority (NTSA).

This license, mandated by the National Transport and Safety Authority (Transport Network  Companies, Owners, Drivers and Passengers) Regulations, is essential for operating transport network services  through the transport network platforms. It’s not just a formality, but a significant milestone in your journey to becoming a ride-hailing service provider in Kenya.  

Here is a step by step guide on how to obtain a Transport Network Operator Licence in  Kenya: 

Step 1: Eligibility criteria  

Before getting into the application process, ensure your company meets the eligibility criteria of being/having: 

✔ A corporate body legally registered in Kenya 

✔ A valid tax compliance certificate 

✔ Duly registered by the Data Commissioner as a Data controller of processor 

✔ Have a registered office in Kenya 

Step 2: The application  

Submit your application and attach the following  documents; 

∙ Copy of Certificate of Incorporation.  

∙ Certificate of Registration by the Data Protection Commissioner 

∙ Valid Business Permit or Trade License  

∙ KRA Pin Registration Certificate  

∙ Valid KRA Tax Compliance Certificate  

∙ List of Directors (CR12)  

∙ Copies of ID Cards or Alien Certificates and Foreigners Certificate (where applicable) 

∙ Contract agreement with the registered owners of the vehicles and drivers  

∙ The revenue sharing agreement with the owners of the vehicles and drivers

∙ Pricing mechanisms

∙ List of vehicles and their make, model, passenger capacity and number plate in the service  fleet 

∙ Detailed procedure for handling complaints from drivers, owners or passengers

∙ Procedure for activation and deactivation of subscription service.  

∙ Code of conduct for employees, Drivers, and owners. 

Step 3: Inspection, Verification and Approval by the NTSA 

Within 14 days after the application submission, the authority will review your documentation to ensure compliance with the regulations, requirements and public interest and, if satisfied, will grant you the license. You will be required to pay a licensing fee of KES 100,000/= 

If you have decided to get into the ride-hailing business in Kenya, then securing a Transport Network Operator License in Kenya is the logical next step. This will help you tap into the opportunities that come with the growth of urban mobility in Kenya. 

The writers are lawyers who specialize in offering legal services to people in technology, in case you need further assistance, don’t hesitate to reach them at info@masibolaw.co.ke