Nairobi, August 8, 2023 - Matatu owners across Kenya have issued a warning to the Parliament against the approval of a proposed bill aimed at granting the Transport Cabinet Secretary, currently Kipchumba Murkomen, the authority to establish both minimum and maximum fare rates for Public Service Vehicles (PSVs).
Controversy Surrounding the Proposed Bill
The National Transport and Safety Authority (Amendment) Bill, 2023, spearheaded by Kimilili Member of Parliament Didmus Barasa, seeks to amend the NTSA Act, 2012. This amendment targets the public transport sector, aiming to address long-standing concerns of commuters being exploited by PSV operators.
If passed, the bill would grant the Transport Cabinet Secretary the power to set fare rates and devise mechanisms for periodic fare reviews to ensure fairness and reasonableness.
Matatu Owners' Opposition and Rationalization
Matatu owners have voiced their opposition to the bill, highlighting concerns over government interference in private businesses. A member of the Matatu Owners Association (MOA) emphasized that the current fare structure, which varies based on factors such as distance, time of day, and fuel prices, adequately addresses public needs.
The traffic coordinator expressed skepticism about the government's intervention, stating, "The main question here is what is the government doing to cushion the matatu industry from the high cost of living?"
Challenges Faced by Matatu Industry
In addition to their opposition to the bill, matatu owners highlighted the economic challenges they face. The tough economic climate has already led some operators to diversify into other businesses or auction their vehicles due to financial strain.
Matatu owners stressed the importance of comprehensive government support and investments in the transport sector to ensure the industry's viability and meet the needs of all stakeholders.
Call for Inclusive Dialogue
Nelson Nduki, the CEO of Super Metro, emphasized the need for collaboration and dialogue before implementing such regulatory measures. He suggested that Transport Cabinet Secretary Murkomen engage all stakeholders in the public transport sector to better understand their challenges and concerns.
Nduki questioned the formula that would be used to regulate fares, considering factors like spare parts, fuel prices, insurance, and other expenses.
History of Government Intervention
The proposed bill is not the first attempt by the government to regulate the matatu sector. The National Youth Service (NYS) buses were introduced in 2018 to provide affordable public transport in Nairobi at a flat fare of Ksh20. However, this initiative faced challenges, including high operating costs and an insufficient number of buses, leading to its eventual discontinuation.
As the debate over the bill continues, stakeholders from various sectors are closely watching the developments to see how the government and the matatu industry will navigate these complex issues.