Government Out to Set Matatu Fares in New Law

The National Transport and Safety Authority (Amendment) Bill, 2023 has been introduced by Kimilili MP Didmus Barasa to the National Assembly, seeking to amend the NTSA Act, 2012. 

If passed, the amendment will grant Transport Cabinet Secretary Kipchumba Murkomen to outline minimum and maximum fares for public service vehicles (PSVs), although the sector is privately run. Currently, PSVs set their own pricing structures depending on deciding forces like the distance covered, route, and fuel prices. The CS will also establish the mechanisms for reviewing fares and ensure that they are fair and reasonable. 

“The NTSA Act is amended by inserting the following new subsection; the [Transport CS] may, in consultation with [NTSA], make regulations prescribing the maximum and minimum fares payable by passengers in public service vehicles within the country,” says the Bill.

According to Mr Barasa, the proposed amendment aims to shield commuters from spontaneous increments in public service vehicle fares, especially during periods of spiralling fuel prices. In 2018, the Jubilee administration introduced National Youth Service (NYS) buses in Nairobi charging only Sh20 per ride. However, due to the high costs involved and a lack of impact, the initiative failed. 

Matatu operators have asked the government to regulate the sector, but the government does not provide any support for fuel, loans, repairs, or maintenance. Instead, analysts suggest that the government create policies to promote discipline and order. Kenya's public service vehicles (PSVs) transport millions of passengers annually and with the population exceeding 50 million, demand for vehicles continues to increase. In 2022, 99,365 new motor vehicles were registered, most of which were personal vehicles. In 2022, the number of buses and coaches that were officially registered increased significantly to 2,173, which is more than double the previous year's total of 893 units.