Uber has been ordered by the High Court of Kenya to settle all disputes with drivers locally and not in the Netherlands.
Justice David Majanja ruled that Uber arbitration be conducted in Nairobi as opposed to the contractual terms of Uber Bv and that mediation be conducted only in the Netherlands.
Kanuri Limited and 33 aggrieved Uber contractors went to court in 2016 after the ride-hailing firm slashed fares by 35 per cent but maintained commissions at 25 per cent, which financially affected drivers’ earnings while breaching contractual terms.
Some of the grievances they wanted to determine by the court included a reduction of fare prices by Sh200, restoration of Sh60 per kilometre cost and a minimum fare charge of Sh300.
It also wanted the defendant restrained from varying fare rates unless under consultation, among others.
“…. Since the 2nd Defendant has waived the condition that the arbitration be conducted in the Netherlands, it shall be conducted in Nairobi,” Justice Majanja said in his ruling.
In May 2022, Uber filed an application at the Supreme Court to be allowed to settle the dispute with the driver under the firm’s contractual terms.
“Any dispute, conflict or controversy, howsoever arising out of or broadly in connection with or relating to this agreement, including those relating to its validity, its construction or its enforceability, shall be first mandatorily submitted to mediation proceedings under the ICC Mediation Rules. If such dispute has not been settled within sixty days after request for mediation has been submitted under such ICC Mediation Rules, such dispute can be referred to and shall be exclusively and finally resolved by arbitration … The place of arbitration shall be Amsterdam, The Netherlands,” the clause read.