MasiboLaw LLP

By Meshack Masibo and Sarah Mwende

If you are in the delivery business, whether parcels or packages then your industry is undergoing a massive transformation that you need to be wary of. The Communications Authority of Kenya (CA) has officially introduced a dedicated licensing regime for Courier Hailing Service Providers . What this basically means is that you now need a licence to continue operating legally in Kenya.

This development establishes a clear licensing framework for businesses that use technology to facilitate courier services, reflecting the rapid growth of Kenya’s digital logistics sector. This framework is governed by the Kenya Information and Communications (Postal and Courier Services) Regulations.

Who is Affected by the New CA Licensing Regime?

This framework specifically targets technology-driven platforms that leverage digital systems to facilitate last-mile logistics. If your business operates an app or online platform that connects customers with delivery riders, drivers, or fleet operators, you fall under this regulatory net.

This includes platforms similar to:

• On-Demand Food & Grocery Apps (e.g., Glovo, Jumia)
• Ride-Hailing Platforms with package/parcel delivery features (e.g., Uber, Bolt, Little)
• Logistics Marketplace Platforms that pool independent third-party riders or vehicle owners

Crucial Distinction: Even if your platform does not own a physical fleet or hire riders directly, you still require this licence. The act of digitally facilitating, matching, or connecting users with courier services is now a licensed activity under Kenyan law.

Understanding the Financial Obligations: New Licence Fee Structure

Previously, digital delivery platforms navigated a regulatory loophole, often operating under simpler software licensing or basic national courier operator permits. The new regime establishes a structured fee framework specifically for digital hailing operators:

• Application Fee: KES 5,000 (Non-refundable payment required at the time of submission)
• Initial Licence Fee: KES 100,000 (Payable upon approval of the application)
• Annual Operating Fee: KES 100,000 or 0.4% of your annual gross turnover, whichever is higher
• Universal Service Levy: 0.5% of annual gross turnover (calculated based on your audited financial statements)
• Licence Validity: 10 Years (Subject to active annual compliance)

The “Turnover Tax” Reality

The combined effect of the 0.4% Annual Operating Fee and the 0.5% Universal Service Levy creates a cumulative 0.9% regulatory charge on your gross annual turnover. For high-volume platforms, this represents a significant cash flow consideration that must be factored into unit economics and rider payout structures.

Step-by-Step Licence Application Process

The Communications Authority manages the application process online through its unified Communications Authority Information Management System (CIMS) portal. To transition your platform into compliance, follow these steps:

Verify Corporate Governance

Review your shareholding structure. While the CA removed the minimum 30% local Kenyan shareholding requirement, it is still important for any foreign directors/shareholders to hold appropriate work permits that allow them to do business in Kenya.

Compile Mandatory Corporate Documentation

Gather your Certificate of Incorporation (or Registration of Business Name), KRA PIN, and a valid Tax Compliance Certificate (TCC) for both the company and its primary directors.

Draft the Technical and Business Proposal

Draft a comprehensive 3-to-5-year Business Plan. The CA requires deep visibility into your technical architecture, data protection protocols, dispute resolution mechanics for lost/damaged goods, and the template Service Level Agreements (SLAs) signed with your riders.

Create a Portal Account on CIMS

Register your company on the CIMS portal. Complete your corporate profile and upload the preliminary legal documents.

Submit Application & Pay the Processing Fee

Upload your finalized technical proposal and business plans under the Courier Hailing Service Provider category, then generate the portal payment slip to settle the non-refundable KES 5,000 application fee.

Await Gazette Publication

Upon review and preliminary approval by the CA, the application is typically gazetted in the Kenya Gazette for 30 days to allow any public representations or objections.

Settle Initial Fee & Receive Your 10-Year Licence

Once the gazettement period lapses with no objections, the CA will issue a formal Letter of Offer. Pay the KES 100,000 initial licence fee to secure your 10-year operating certificate.

Strategic Implications for Hailing Platforms

This regulatory pivot carries three immediate strategic implications that digital delivery businesses must address:

• Rider SLA Restructuring: Ensure your contracts clearly state that independent riders are legally operating as agents of your licensed platform. Alternatively, if your platform partners with independent logistics companies, those third-party entities must hold active National Courier Operator Licences.
• Data Privacy Alignment: As digital intermediaries handling vast amounts of customer geolocation, contact, and transaction data, hailing providers must fully comply with the Data Protection Act, 2019, including registration with the Office of the Data Protection Commissioner (ODPC).
• Margin Management: The cumulative 0.9% gross revenue drain means startups and multinational platforms alike must carefully adjust their pricing models, commission splits, and customer delivery fees to absorb these operating expenses.

Secure Your Regulatory Compliance in Kenya

Navigating the CA’s licensing pipeline requires precise legal structuring—from drafting technical service level agreements (SLAs) to managing local shareholding compliance.

At MasiboLaw LLP, we advise businesses on regulatory compliance, licensing, and market entry across the technology, transport, and logistics sectors. We can assist in assessing whether your business falls within this new framework, preparing licence applications, engaging with the Communications Authority, and advising on the broader regulatory implications of the Regulations.

In case you need assistance, you can reach us on info@masibolaw.co.ke