The Matatu Owners Association has renewed calls for a cashless fare system, arguing that cash payments have made it easier for corruption to thrive in the public transport sector.
Association chairman Simon Kimutai told a public transport forum at the Kenyatta International Convention Centre in Nairobi that the presence of liquid cash had turned the industry into an easy target for extortion by traffic police officers.
“Money offences have now been turned into cash cows. The available money is the source of corruption in the transport sector,” he said.
Kimutai also urged the National Transport and Safety Authority to give matatu saccos the power to revoke licences of members who ignore regulations. He said the sacco structure is often left to bear the cost when accidents happen, and should therefore be allowed to act more firmly against rogue operators.
“It is the saccos that suffer during accidents. If they are empowered, they will rein in [malpractices and punish] errant members,” he said.
The cashless payment push is not new. In 2014, the Transport ministry directed all matatus to adopt the system under the Operation of Public Service Vehicles Regulations, 2013. The deadline was first set for July 2015 before being moved to December that year.
The policy was meant to improve order in the sector and help the Kenya Revenue Authority track and collect taxes. Several firms entered the market, including Safaricom with Lipa na M-Pesa, Fibre Space Limited with MY 1963, Google in partnership with Equity Bank through Beba Pay, and a Hong Kong company behind TaptoPay.
Supporters said the system would help operators manage cash flow, reduce fare manipulation during peak hours, and make pricing more predictable for passengers. Receipts were expected to show a passenger’s balance, vehicle registration number and the conductor’s name.
Card registration was free, with users required to provide a national identity card, a valid phone number and date of birth. They could then top up through M-Pesa or other payment channels depending on the card platform they chose.
Kimutai rejected claims that matatus were boycotting the system, saying the main challenge was the lack of gadgets needed for compliance. He also raised concern over sub-standard seat belts, saying the Kenya Bureau of Standards was not carrying out proper inspections.
Transport Cabinet Secretary James Macharia and Interior Cabinet Secretary Fred Matiang’i said the rules introduced in 2003 under the leadership of John Michuki would be enforced more strictly.
The push comes as road deaths continue to rise. Authorities said accidents had killed 8,000 people in the previous three years, while 58 people died in a bus crash in western Kenya the month before the remarks.
