Ride hailing app Bolt has announced a new 16 percent charge on commissions payable to its drivers.
In a statement, the app says the move is to align with VAT regulations introduced by Kenya on electronic, internet and digital marketplace supply.
“Over the past 15 months, Bolt has absorbed the VAT obligation on behalf of its drivers, ensuring their earnings remained unaffected during a period of adjustment,” says Dimmy Kanyankole, General Manager, Bolt Kenya and Tanzania in a statement to newsrooms.
While this is expected to eat into the earnings of the drivers, Bolt says it will engage them through the transition. Bolt currently charges a commission of 20% on every trip.
“We will continue to engage them through awareness and education and offering them opportunities to ensure they maximise their earnings.” Added Kanyankole.