Commissions earned by Bolt drivers will henceforth attract 16 percent value added taxes (VATs) after the passage of the 2023 Electronic, Internet and Digital Marketplace Supply Regulations.

Over the past 15 months, Bolt has absorbed the VAT obligation on behalf of drivers, cushioning their earnings.

The application follows a guidance from the Kenya Revenue Authority (KRA) and the National Transport and Safety Authority (NTSA).

“Our focus remains on compliance, fairness, and sustainability,” said Dimmy Kanyankole, General Manager, Bolt Kenya and Tanzania.

“We are committed to supporting our drivers through this transition and will continue to engage them through awareness and education and offering them opportunities to ensure they maximise their earnings.”

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This comes at a time when drivers are battling with high fuel prices that have eaten into their earnings.

Likewise, online tax business has been hit by low demand amid tough economic challenges facing Kenyans.