Running a digital delivery business in Kenya is about to become more expensive after the Communications Authority introduced a new licence that targets app-based courier platforms.
The changes will require companies such as Uber, Bolt, Glovo and Little to pay higher permit fees as the regulator separates digital delivery services from traditional courier operators.
The Communications Authority of Kenya (CA) has rolled out a 10-year Courier Hailing Service Provider licence to cover companies offering courier services through digital platforms. Under the new category, firms will pay a Sh5,000 application fee, an initial licence fee of Sh100,000 and an annual operating fee of Sh100,000 or 0.4 percent of their annual gross turnover, whichever is higher.
In addition, the companies will be expected to pay a universal service levy of 0.5 percent of their annual gross turnover under 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.
The new licence targets businesses that have expanded beyond their original services to meet the growing demand for parcel deliveries. Companies such as Uber, Bolt and Little, which started with ride-hailing services, now also transport parcels, while Glovo has focused on food and other deliveries through its digital platform.
Before the changes, the companies operated under the National Courier Operator licence, which is also used by matatu saccos including 2NK and Mololine. That permit is also valid for 10 years but costs less, with an initial licence fee of Sh30,000 and an annual operating fee of Sh30,000 or 0.4 percent of annual gross 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,” the CA spokesperson said.
The regulator said the new licensing structure will take effect on July 29, as outlined in a Kenya Gazette notice.
“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 comes as the government looks to collect more revenue from the expanding delivery business, which has continued to grow with the increase in online shopping, business logistics and same-day parcel delivery.
As more consumers choose to shop online instead of visiting stores, demand for parcel delivery services has continued to rise. More households and businesses are also relying on delivery services because of the convenience they offer.
Many digital courier companies have partnered with leading supermarkets and retail chains to deliver goods directly to customers. Uber Eats, for example, works with Carrefour, Naivas, Quickmart and Chandarana Foodplus to provide home and office deliveries.
The new Courier Hailing Service Provider licence becomes part of the existing licensing system, which also includes the Public Postal Operator, International Courier Operator and National Courier Operator licences.
The Public Postal Operator licence, issued to the Postal Corporation of Kenya (Posta), remains the highest-priced permit. It is valid for 15 years and attracts an initial licence fee of Sh1.5 million, an annual operating fee of Sh500,000 and a universal service levy of 0.5 percent of annual gross turnover.
The International Courier Operator licence is issued to companies offering international courier and postal services, including Wells Fargo and G4S. It runs for 10 years and 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.