The Nairobi Metropolitan Area Transport Authority (NaMATA) has initiated plans to consolidate all matatu Saccos within the city metropolis.
Speaking during an interview Monday, November 21, NaMATA Director General Francis Gitau, stated that the move was aimed at streamlining the city's transportation and providing efficiency.
Bringing together the sector players would help the authority create enough capital to start the company.
Gitau indicated that talks between the Saccos and the government body had already kickstarted, and they were working on modalities for how the company will operate.
"We have shared a company structure with them because most Saccos operate multiple routes. Capitalizing a company requires money, and we are saying that there is power in numbers.
"Why shouldn't we include every operator in the metropolitan area? They have agreed," he stated.
Speaking to Kenyans.co.ke Association of Matatu Operators (AMO) Branden Marshall indicated that the move will work only if it offers more help and services to the sector players than the Saccos.
"Saccos were formed to bring law and order, and it is a requirement to join them. However, they have not proved to be beneficial as much.
"If we can find a good body that will help us in litigations and address complaints of the owners and investors, then the move will be good. If people will have more bargaining power, then why not? he stated.
NaMATA is also working on criteria for how the Saccos will hold shares in the company.
"We have proposed for the people on the corridor we develop at 25 per cent and investors in the metropolitan area at 40 per cent," he stated.
The government was proposed to hold 35 per cent of company shares.
According to Gitau, the government did not intend to be the biggest shareholder as it wanted the company to be independent and run by the private sector.
"It would not be wise to envision a situation where they rely on the government. This must be a private sector-led business.
"The government is just coming in to transform this business industry by bringing on board the professional approach to the delivery of services," he stated.
