Matatu owners have cautioned Parliament against approving a proposed bill seeking to hand the Transport Cabinet Secretary, currently Kipchumba Murkomen, powers to set minimum and maximum Public Service Vehicle (PSV) fares.
The National Transport and Safety Authority (Amendment) Bill, 2023, introduced by Kimilili Member of Parliament Didmus Barasa, seeks to amend the NTSA Act, 2012 in a move geared at reining in on the public transport sector players who have perennially been accused of exploiting commuters.
If approved, the Transport Cabinet Secretary will also outline the mechanisms for reviewing the fares to ensure they are fair and reasonable.
Speaking to Kenyans.co.ke, Brendan Marshall, a traffic coordinator and member of the Matatu Owners Association (MOA), questioned why the government would interfere with private businesses.
He argued that the bill is not necessary since all Saccos already have detailed fare charts which take into account the needs of the public. The official supported his argument by pointing out that the fare prices depend on a number of factors including; distance, time of the day and fuel prices.
"I always recommend a win-win situation from both stakeholders. The main question here is what is the government doing to cushion the matatu industry from the high cost of living?" he posed.
Marshall pointed out that matatu owners have already taken a beating from the current tough economic climate and some of the players have already been forced to auction their Public Service Vehicles (PSVs) and ventured into other businesses.
He argued that instead of following up on the proposal, the government should make further investments in the transport sector to ensure it serves all stakeholders appropriately.
"Right now the retail price for a 33-seater is around Ksh6.4 million and that is the chassis with a standard body. This does not factor in insurance, graffiti, sound system and licenses," he stated.
"So, our stakeholders end up taking loans which they have to service over a period of time and hence rely on the profit earned from the business to stay afloat."
Nelson Nduki, the Super Metro Chief Executive Officer (CEO), took the cue from Marshall questioning what formula the government will use to regulate the fares.
"When you do this, you need to account for several factors such as spare parts, fuel prices, insurance and other expenses. I wish they could focus on restoring order in the industry. What we're lacking is support from the government," he stated.
He put forward the argument that Murkomen should involve all public service transport stakeholders to find out the challenges they are going through before moving forward to implement such proposals.
Matatu Saccos currently possess complete autonomy in determining fare rates, which are contingent on factors like distance, time of day, and fuel prices.
The government has in the past attempted to intervene in the sector by introducing the National Youth Service (NYS) buses in 2018.
The buses operated on various routes in Nairobi at a standard fare rate of Ksh20. However, this initiative collapsed due to the high operating costs and an inadequate number of buses, which only served a fraction of the city's residents.
