The Federation of Public Transport Sector (FPTS) has listed five demands to the government following the recent hike in fuel prices.
In a statement signed by FPTS Chairman Edwins Mukabanah dated Friday, September 15, the association noted that the government has failed to cushion the matatu sector from the ravaging effects of the high cost of living.
This, according to the association, led to private investors in the market incurring losses and subsequently fleeing the sector.
"The Federation would like to let the government know that, whereas fuel usage by the private car is a consumption activity and, therefore, needs no subsidy, fuel usage in the public transport goes into production of essential services that need cushioning," the statement read in part.
Secondly, the Federation took issue with the interest rates on loans, which have increased to over 20 per cent. In line with this, they lamented that the government has failed to provide a Public Service Vehicle (PSV) funding mechanism such as the Agricultural Finance Corporation (AFC) in the agricultural sector.
NTSA Failure
The federation also highlighted that the National Transport and Safety Authority (NTSA) is unable to regulate supply and demand, saying that there is an oversupply of vehicles into the market.
According to the matatu operators, the numbers of motorists purchasing vehicles has increased during the post-pandemic era and hence faulted the NTSA for lacking an effective mechanism to regulate the supply in the country.
Additionally, chairman Mukabanah said that the government is unwilling to partner with the PSV operators to contain corruption in the industry. They faulted the Kenya Kwanza government for failing to introduce a cashless system and instant fines for those who contravened the law.
Further, the Federation exposed the insurance companies for failing to pay claims, causing investors to lose their funds through a cartel of auctioneering activities.
"Despite our complaints, Insurance Regulatory Authority is doing nothing about it."
The federation invited the government to conduct a survey in Rwanda to ascertain what needs to be done to create an efficient and competitive public transport system where provision of PSV services is sustainable.
The demands come as the Energy and Petroleum Regulatory Authority (EPRA recently increased the fuel prices of petrol, diesel, and kerosene prices by Ksh16.96, Ksh21.32, and Ksh33.13 per litre, respectively.
This means that the prices will now retail at Ksh211.64, Ksh200.99, and Ksh202.61 in Nairobi.
