Government introduces Digital Transport Fee on ride hailing apps

Government through the Driver and Vehicle Licensing Authority has begun the implementation of the Digital Transport Fee on all rides as tax.

Customers would be charged an amount of ¢1 as digital transport fee on all rides.

The digital transport services guidelines was earlier introduced in pursuant to the Drivers and Vehicle Licensing Authority Act.

According to the government, these guidelines were designed to ensure that digital transport system operators operate in compliance with the law, maintain high safety standards and provide quality service to passengers.

Speaking in an interview President of the Ride Hailing Association Francis Tenge said there would be an increase in prices of rides as customers would be charged ¢1 as Digital Transport Fee going forward.

“The DVLA directive is going to have an impact on both drivers and riders. It means prices are going to increase, every fare you pay is going to increase by ¢1 so in a day, if you pick two rides, you will pay extra ¢1 to the government,” he said.

The per-trip fee shall be reviewed periodically based on the DVLA’s review of the market and other parameters.

Government also posited that there was the need for ride hailing operators to follow appropriate guidelines to ensure the safety of passengers, drivers and other road users.