As of September 20, a new regulatory framework has been introduced. It requires companies like Uber, Bolt, Glovo, and Little to keep digital records of all parcels in transit. These records must be accessible by the Communications Authority of Kenya, the Kenya Revenue Authority, and law enforcement. They can request access without needing a warrant.
This development stems from the Communications Authority’s newly introduced 10-year courier licence, designed for ride-hailing platforms that are expanding into parcel delivery services. The licence mandates these companies to log details of senders and recipients, inspect package contents, and share this information with regulatory bodies “upon request” if there is suspicion of illicit goods.
While the intention behind this measure is to curb smuggling by preventing the transportation of contraband such as drugs, weapons, and stolen items, it effectively grants three government agencies unrestricted access to the parcel data of ordinary citizens, lacking any judicial oversight in the request process.
The financial burden on consumers is indirect but meaningful. Delivery companies must now pay a Sh5,000 application fee. They also face an initial licence fee of Sh100,000 and an annual fee of either Sh100,000 or 0.4% of their gross turnover. The higher amount applies, plus a 0.5% universal service levy on annual turnover.
These costs are inevitably passed on to consumers through increased delivery charges, which in turn affect the prices of goods transported via these platforms, including food, medication, documents, and inventory for small businesses.
Read Also: Bar owners seek input on tobacco law
The regulation is framed as a tax compliance tool. The government describes ‘digital tools… emerging as weapons in the fight against tax cheats.’ This suggests parcel data may soon be used for revenue collection. It blurs the line between courier rules and informal trade surveillance.
However, there are also consumer protection benefits embedded in this regulation. Companies are now obligated to compensate customers for lost, delayed, or damaged goods within 90 days of a complaint being filed, and customers have the right to verify a rider’s identity and track their parcels in real-time, introducing a level of accountability that has been lacking in the sector.
Yet, compensation has a major exception. If a parcel’s contents weren’t declared, companies avoid liability. This loophole could be exploited, given how casually many people use delivery services. Undeclared items often include miscellaneous or informal goods.
These rules apply only to private courier services. The state-owned Postal Corporation of Kenya operates under a different, possibly weaker, surveillance system. This raises fairness and proportionality concerns. Uber is now seeking a national courier operator licence as an alternative.
Leave a Reply