Online delivery platforms such as Uber, Bolt, Glovo and Little will pay higher licence fees to operate in Kenya after the government introduced a new permit for the fast-growing service segment.
The Communications Authority of Kenya (CA) has introduced a 10-year Courier Hailing Service Provider licence for the segment, separating the licensing requirements for digital delivery platforms from those of traditional courier operators.
Digital delivery service providers will now pay a Sh5,000 licence application fee, an initial licence fee of Sh100,000, and an annual operating fee of Sh100,000 or 0.4 percent of their gross annual turnover, whichever is higher.
The firms will also pay a universal service levy of 0.5 percent of their annual gross turnover, according to the regulator’s new postal and courier market structure.
“The new licence has a national scope and will be issued to companies offering courier services through digital platforms, whether they operate their own vehicle fleets or outsource motorcycles or trucks from transport operators,” a CA spokesperson told the Business Daily by phone.
Companies such as Uber, Bolt and Little have in recent years expanded beyond their traditional ride-hailing businesses into parcel delivery amid rising demand for online shopping and food delivery, a market that apps such as Glovo have long specialised in.
Until now, these companies have been operating their delivery businesses under the cheaper National Courier Operator licence, which is also used by matatu saccos such as 2NK and Mololine.
While that licence is also valid for 10 years, it attracts an initial licence fee of Sh30,000, with operators paying an annual operating fee of Sh30,000 or 0.4 percent of their gross annual turnover, whichever is higher.
“From now on, the digital platforms will be automatically moved to the new licence category, and they will be required to top up the extra (Sh70,000) licence fees and begin paying the new annual operating fees going forward,” the spokesperson said.
The new rules take effect on July 29, according to a Kenya Gazette notice issued by the CA.
“The Authority has carried out public consultation on the review of the existing postal and courier market structure for the postal services to respond to growing technological and market trends in the sector,” the notice says.
The move is part of the State’s efforts to grow revenue from a sector that is expanding rapidly on the back of rising demand for e-commerce deliveries, business logistics and same-day parcel distribution services.
Growth in e-commerce has fuelled demand for parcel movement as more transactions shift from physical stores to online platforms.
Kenya has also witnessed rising consumer spending power and a growing preference for convenience, with more shoppers opting for home and office deliveries.
Most courier-hailing firms have partnered with leading retail chains to deliver groceries and other goods to homes and offices. Uber Eats, for instance, has partnerships with Carrefour, Naivas, Quickmart and Chandarana Foodplus for door-to-door deliveries.
The new permit joins the existing Public Postal Operator, International Courier Operator and National Courier Operator licences issued by the CA to postal and courier services firms.
The 15-year Public Postal Operator licence, issued to the Postal Corporation of Kenya (Posta), is the most expensive, attracting an initial licence fee of Sh1.5 million and an annual operating fee of Sh500,000.
Posta is also required to pay a universal service levy of 0.5 percent of its annual gross turnover.
The International Courier Operator licence, meanwhile, is valid for 10 years and is issued to companies providing inbound and outbound international postal and courier services, such as Wells Fargo and G4S.
It attracts an initial licence fee of Sh100,000 and an annual operating fee of Sh100,000 or 0.4 percent of annual gross turnover, whichever is higher.
The licence also covers national courier services, allowing holders to operate within Kenya.
As of February, Kenya had 347 licensed postal and courier operators.
