The people of Kenya have vehemently opposed the government for corruption, heavy borrowing, and wasteful spending. The Government warned news reporters such as Human Rights Watch from reporting the number of people that were killed in protests. At least 73 were abducted and missing by August, and several were injured by the forces of police brutality. Bodies that went missing were found abandoned in rivers, quarries, forests, ortuaries, showing signs of mutilation and toruture. What sparked this collective wave of protest was the proposed Finance Bill 2024, which aimed to impose controversial tax measures (on bread, sanitary pads, diapers, and cancer medication), unfairly burdening citizens, and machinated by the IMF and other predatory colonialistic organisations collecting debt. The bill sought to raise an unprecedented KES 302 billion ($2.3 M) in additional revenue, a 43% increase compared to the previous year.
GenZ’ers and Millenials have been at the frontline of this revolution, while protesting peacefully, despite the government’s use of planting goons to disrupt and sabotage our agenda.
The unrest has spread to various sectors, with ride-hailing application (app henceforth) drivers, journalists, architects, and even matatu (public transport) drivers joining the protests. Neighbouring and cross-border countries like Uganda, Malawi, all the way to Nigeria, and Ghana had also expressed solidarity, with planned anti-tax marches.
It’s time for innovative solutions that empower citizens and challenge the status quo to emerge and resolve economic hardship and civic unrest. Developing a driver-centric decentralized app (Dapp) that prioritizes the well-being of drivers and passengers could disrupt the exploitative practices of companies such as Uber, which have been accused of underpaying their workers. There’s no reason why a platform that offers fair compensation, better working conditions, and a sense of community shouldn’t exist today! Such an app could serve as a beacon of hope for Kenyans seeking to take control of their economic futures.
Uber to Kenyan drivers is like IMF to developing countries such as Kenya. Both drivers and the governments of these nations are essentially enslaved by the domineering entities. In the spirit of the protests that promulgated across Africa, while citizens hold their leaders accountable, I have explored the development of a blockchain-based ride-sharing app. This initiative aims to address the issues of unfair pay, and divisive practices by Uber while offering a solution that aligns with the principles of fairness and community ownership.
Project Overview:
I dream of a Dapp that will leverage blockchain technology to build a decentralised, open-source, and localised platform in which drivers can benefit from lower deductions, and both drivers and passengers will benefit from ownership stakes and incentives. The goal is to ensure that the Dapp serves the interests of the locals, rather than external entities like corporate Uber seeking profit.
Social Challenges
1. Government Interference:
Members of government may be influenced by companies like Uber that provide kickbacks, making it difficult for new apps to gain traction. The first strategy that needs to be in effect is to mobilize drivers to boycott Uber and other competitors to pressure the government into supporting the Dapp. During the protests, this had already been effect, however, I was still able to hail an Uber, as drivers need to break bread.
2. Driver Divisiveness:
Sabotage. Existing companies may employ tactics to divide drivers and undermine the new Dapp. We need to ensure a strong community of support and unity among drivers to counteract divisive tactics.
3. Verification and Trust:
Implementing robust verification processes while differentiating from competitors who may not have such requirements, and establishing a reputation for reliability and fairness to build trust among drivers and passengers.
Suggestions:
Create a DAO
African communities have practised decentralised organiastion for a long time. Also known as micro-savings groups, women in Kenya had originally been forming informal and unregulated groups known as Chamas, and pooling resources of a fixed amount in a merry-go-round fashion for a fixed period of time, to access loans, invest in assets or support communities together. This has been so successful, that men now participate. There are at least 300,000 chamas in Kenya alone, worth $3.4 Billion in assets.
The regulated micro-savings and investments version of Chamas is called a SACCO, a Savings and Credit Coopperative. Both approaches allow for financial inclusion, and financial education. However, SACCO’s are not decentralised.
By creating a DAO, the drivers can effortlessly transition as they understand the concept of decentralisation from Chamas, and pooling resources to for financial inclusion for all. The vision of a driver’s DAO for a ride-sharing Dapp would be loyalty-based. In tokenomics, where token holders buy their rights, this DAO would be driven by a reputation system. Drivers would be ranked based on points. We could also factor in passengers, so that they have a say in the direction of the DAO and the ride-sharing Dapp. Drivers and passengers with higher loyalty points earn the rights to vote and submit proposals on how best to run the DAO. Reputed people would have a chance to prove that they are credible and get selected into management teams and even have access to treasury. As their ranks go up, it is evened out by team rotations, thereby very year new leadership is voted in, and old leadership, depending on their contributions, can be voted into the advisory board.
Below are some of the opportunities provided by the structure aforementioned;
1. Blockchain Integration:
- Decentralization: Utilizing blockchain to ensure transparency and fairness in transactions.
- Ownership: Allowing drivers and passengers to earn rights for decision making, incentivizing high-quality service.
- Implement smart contracts to automate revenue distribution, and rewards allocation. These contracts ensure transparency and reduce the need for manual intervention, making it easier for drivers to manage.
- Integrate a voting platform within the Dapp to facilitate democratic decision-making. This would allow members to vote on key issues such as board elections, major expenditures, and policy changes.
2. Fair Commission Structure:
- Reduced Fees: Offering a commission rate significantly lower than the current 25% imposed by companies like Uber.
- Incentives: Implementing reward systems for both drivers and passengers to encourage professionalism and loyalty.
3. Economic Growth:
- Positive Impact: Contributing to local economic growth through fair wages and reduced service costs. Additionally, the profits generated by the Dapp will be maintained regionally within Kenya, rather than going out to the Western headquarters of these corporate entities.
- Community Engagement: Encouraging community involvement and support for the Dapp.
4. Stablecoin
Celo has built a stablecoin (cKES) pegged to the Kenya Shilling. We have a use case where Mini Pay on the Opera browser, is built on CELO blockchain. Lena Hierz, Developer Relations Manager of CELO claims that it has “4 million users” across Africa, mainly Nigeria, Kenya, and Ghana. It allows for low-cost transactions using stablecoins through your mobile phone.
By using the low cost, quick settlement, and programmable features of cKES, the integration into the DAO’s smart contract has the potential to increase adoption, enhance transaction efficiency, and cut down on fees significantly.
5. Political and Social Support:
Leverage political GenZ leaders and the GenZ wave to spread the word and garner support.
Additionally, trigger boycott campaigns, by mobilizing drivers to boycott Uber, Bolt, and other big players. to build momentum for the new Dapp.
Why Ethereum is one of the best ways to solve the challenges
In a context of socio-political unrest, corruption, and economic exploitation, building a blockchain-based ride-sharing app that empowers drivers and passengers aligns with Kenya's community-centric traditions like Chamas and SACCOs. Ethereum, as the leading smart contract platform, offers an ideal foundation to realize this vision. Here's why Ethereum is one of the best approaches for addressing the challenges in creating this decentralized platform:
1. Decentralization: Challenging Exploitation & Government Interference
Government interference and corporate manipulation can hinder the success of a ride-sharing app. Large corporations like Uber have established relationships with officials, offering kickbacks to maintain market dominance. With Ethereum’s decentralized infrastructure, the Dapp can operate as a Decentralized Autonomous Organization (DAO), where no single entity controls the platform. Smart contracts will ensure transparent and tamper-proof governance, which reduces the risk of interference by the government or corporations. While DAO members, composed of drivers and passengers, can make decisions democratically without external influence. Finally, transactions and communications between users (peer-peer) are handled directly on the blockchain, bypassing centralized systems that could be co-opted.
2. Transparency and Fairness: Solving Driver Exploitation
Current ride-hailing platforms take up to 25% of driver earnings, exploiting drivers who are already struggling economically. Through smart contracts, revenue can be automatically distributed to drivers based on predefined rules, ensuring transparency and minimizing fees. Drivers and passengers can also earn tokens as rewards for loyalty, which can be staked, traded, or used for governance.
An open-source platform could ensure that anyone can audit the commission structure and verify that deductions are fair. And a reduced commission structure (e.g., 5-10%) is automated through smart contracts, leading to well-deserved compensation.
3. Community Ownership and Economic Empowerment
Kenyan drivers and passengers lack ownership in current ride-sharing platforms, and profits are often siphoned off to foreign corporate headquarters. Through tokenized ownership, drivers and passengers earn governance tokens proportional to their usage and contributions, giving them a direct stake in the platform’s success. Revenue from the Dapp is managed by a community-owned treasury, with funds reinvested in the community for development, support, and expansion.
Using stablecoins like cKES promises low-cost, fast, and stable transactions, preventing volatility and nurturing financial inclusion as Chamas and SACCO’s do.
4. Trust and Verification: Building a Reliable Network
Building trust and verifying users (both drivers and passengers) is crucial in a market where safety and reliability are key. By implementing a Decentralized Identity (DID) system on Ethereum, we could ensure verifiable, tamper-proof identities for drivers and passengers. Enhancing safety for everyone. These identities can be used across platforms and services, ensuring that only verified, reputable individuals participate.
Smart contracts can also track and manage reputation scores for drivers and passengers based on their performance, reliability, and user feedback. Higher reputation scores could lead to additional incentives and rewards.
5. Resilience Against Sabotage and Division
Corporations may attempt to sabotage the new Dapp by dividing the driver community or launching smear campaigns.
The DAO model, borrowed for Chamas and SACCO’s, nurture a sense of community ownership, making it more difficult to divide and manipulate members. Decisions that entail the platform are made through a transparent voting system, ensuring unity and collectivism aka UBUNTU.
Drivers and passengers are rewarded with tokens for loyalty, participation, and referrals, creating a strong incentive to stick with the platform.
6. Scalability and Future-Proofing
Being an open-source platform, it must scale across Kenya and potentially to other developing countries facing similar challenges.
7. Social and Political Mobilization
Raising awareness and driving adoption require strong community and political support. Ethereum’s open ledger ensures that all activities, earnings, and governance decisions are publicly visible, resulting in trust and encouraging participation. In addition, Ethereum’s decentralized ethos resonates with Kenya’s younger generations fighting for transparency and fairness, making it easier to mobilize them as advocates and users.
Closing words
Until today as I’m writing this piece, the youth of Kenya are still protesting. It has been a full year of protests. Not only is decentralization a possibility for drivers, but a nation as well. Ethereum’s outlook on subtraction, decentralization, and transparency aligns with Kenya’s socio-political and economical realities. By empowering the youth, drivers, and passengers through tokenized ownership based out of reputation building, fair compensation and financial inclusion, and community governance, the platform can disrupt colonial practices, leading us to break these chains and play a part in economic resilience in Kenya and beyond.
Appendix
Existing Localised Apps in Kenya
- Wasili - In Nakuru and Kericho
- Bebwa - Meru
Ride Sharing App Use Cases