Uber Revises Rider Contracts in Uganda and Kenya After COMESA Probe

Genevieve Nambalirwa, Africa One News |Business

Friday, September 26, 2025 at 12:47:00 PM UTC

images - 2025-09-26T125056.863

Photo| courtesy

Kampala, Uganda — Ride-hailing giant Uber has been compelled to revise its rider contracts in Uganda and Kenya following a two-year investigation by the COMESA Competition Commission (CCC). The revisions come after the regional regulator flagged multiple contract terms as “unfair, misleading, and unconscionable,” marking a significant step forward for consumer protection in Africa’s digital transport sector.

The case stems from numerous complaints filed by Uber users in Uganda, Kenya, and Egypt, who alleged that the platform's contract terms allowed it to change fares mid-trip, cancel rides without explanation, and enforce foreign dispute resolution laws that disadvantaged local users. The CCC initiated the probe in 2023 under the authority of the Common Market for Eastern and Southern Africa, whose jurisdiction includes 21 member states.

One of the most contested clauses allowed Uber to unilaterally modify fare prices even after a trip had begun often leading to surprise charges for users. Another permitted Uber to cancel rides at its sole discretion, without obligation to the rider, even after long waiting times or delays. Perhaps most controversially, the contracts stipulated that any disputes between riders and Uber would be governed by the laws of the Netherlands and settled through Dutch arbitration, making legal recourse nearly impossible for most African users.

In its final ruling, issued on September 18, 2025, the Commission found that such provisions violated the rights of consumers in the region and instructed Uber to amend its standard rider contracts to reflect fairer, locally applicable terms.

Uber has since complied with the ruling and implemented the following key changes:

  • Governing Law: Dispute resolution will now be governed by local laws in Uganda and Kenya, allowing riders to seek redress through domestic legal systems.
  • Contract Termination: Uber can no longer cancel trips without specific cause. The company must now provide valid reasons such as safety risks or technical issues for cancelling services.
  • Fare Adjustments: The clause permitting Uber to change trip costs mid-journey has been significantly narrowed, preventing arbitrary fare hikes.
  • Transparency and Notification: Uber is required to publicly communicate the updated terms to all users in affected countries and ensure future terms are written in clear, accessible language.

According to the CCC, these amendments were necessary to level the playing field between powerful digital platforms and the millions of consumers who rely on their services daily. “These revisions are not just legal victories they are protections for riders who often have no bargaining power when using digital platforms,” the Commission said in a public statement.

Uber’s compliance with the ruling also helped the Commission decide to close the investigation without pursuing further legal action. The resolution is seen as precedent-setting, particularly as ride-hailing and other gig-economy platforms expand across African markets.

Industry analysts note that this case could reshape how digital service providers draft user agreements in the region. It also signals that African regulators are increasingly willing and able to confront global tech firms over local compliance and consumer rights.

"This is a turning point," said one regional policy expert. "Digital platforms are realizing that African markets are not regulatory voids they are mature, rule-based economies where users deserve protections just like anywhere else."

For many riders, the changes represent a long-awaited win. In countries where public transport remains inconsistent, ride-hailing apps like Uber are more than just a convenience they are lifelines for students, workers, and small business operators who need affordable, reliable mobility. With clearer contracts and locally enforceable rights, riders are better positioned to use these services with confidence.

As Africa’s digital economy continues to grow, the Uber case may serve as a blueprint for regulators and consumers demanding greater transparency, fairness, and accountability from tech companies operating on the continent.

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