This archive report was first published on 1 October 2019.
On October 1, 2019, the National Transport and Safety Authority (NTSA) made a decision that would bring back the chaos of matatu rides in Nairobi. The authority banned bus ride-hailing services in the city, citing that the services had been operating illegally.
The affected services included Little Shuttle and SWVL, which had become popular among the working class for their comfort and convenience. Little Shuttle had started operations in February, while SWVL had been in the market since the start of the year and had recently secured Sh1.5 billion funding to finance an aggressive route expansion plan in Nairobi.
NTSA's Director General Francis Meja stated that the services had been operating without proper licenses, which are required for PSV permits. The permits require operators to be members of a sacco, have staff that includes mechanics, and operate on fixed routes, among other requirements.
Little Shuttle's CEO, Kamal Budhabhatti, disputed NTSA's claims, stating that their buses had countrywide TLB licenses, which allowed them to operate on any route. He also emphasized that their route was based on supply and demand software technology.
NTSA's decision has left passengers who had grown accustomed to the convenience of bus ride-hailing services with no choice but to revert to the chaotic matatu rides.
