Why Uber and Bolt Are Facing Fresh Scrutiny Under Kenya’s New Competition Bill.

Kenya is preparing to tighten oversight of ride hailing platforms amid long running complaints that drivers have little influence over the fares, commissions and contractual terms that determine their earnings.

The Competition (Amendment) Bill, 2026 would give the Competition Authority of Kenya broader powers to examine how companies such as Uber and Bolt use algorithms, customer data and their control of digital marketplaces. The proposed law would not allow drivers to directly enter their own prices on the apps, but it could limit the ability of platforms to reduce fares or change commissions without considering the businesses and workers that depend on them.

The reforms come after years of price competition among Uber, Bolt, Little, Faras and other operators. Lower fares have helped attract passengers, but drivers argue that the reductions have not been matched by lower fuel, vehicle maintenance and financing costs. Some motorists have responded by rejecting app generated prices and negotiating higher payments directly with passengers.

Regulating power beyond market share
The Bill would change how Kenya determines whether a company has enough influence to attract regulatory intervention. Current competition rules largely focus on whether a business dominates a large share of a market.

Under the proposed framework, a platform could face scrutiny even without being the largest operator. Regulators would assess whether it holds a “strategic market position” that allows it to influence prices, service quality, output or innovation independently of competitors and users. The CAK would consider factors such as control of commercially valuable data, financial strength, barriers facing new entrants, the cost of switching platforms and network effects, where an app becomes more powerful as more drivers and customers join it.

The Bill also introduces the concept of a “superior bargaining position.” This would apply where a company can impose an imbalance in its relationship with drivers, merchants or other business partners who lack a practical alternative. Possible abuses could include changing contract terms without sufficient notice, imposing unfair trading conditions, charging excessive service fees, transferring commercial risks to weaker partners or making it difficult for them to leave a platform.

What could change for drivers
For ride hailing drivers, the biggest shift would be the possibility of regulatory intervention in disputes over fares and commissions. The CAK could investigate whether a platform’s pricing system unfairly uses its position against drivers and order the company to correct the conduct.

It could also develop binding industry codes governing fare reviews, commission structures, contract changes and dispute resolution. These rules would allow the regulator to respond to new platform practices without waiting for Parliament to pass another law.

Companies found to have abused a strategic market position or superior bargaining position could face criminal penalties of up to Sh10 million, imprisonment of up to five years, or both. The Bill separately provides for administrative penalties that could reach 10 percent of a company’s annual Kenyan turnover.

However, the proposals have also raised concern that Kenya may be adopting European-style digital regulations before establishing whether existing laws are inadequate. Critics warn that poorly designed rules could increase compliance costs, discourage investment and create uncertainty for technology companies.

The final impact will therefore depend on how Parliament defines the regulator’s powers and how carefully the CAK distinguishes unfair conduct from normal competition. For drivers, the Bill offers stronger protection from one-sided pricing decisions, but it does not guarantee higher fares. A separate Transport Ministry proposal on minimum compensation per trip is expected to deal more directly with driver pay.