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SWVL Expands to Upcountry Rides Amid Regulatory Dispute

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 17 October 2019.

Published on October 17, 2019, SWVL, a bus-hailing service, has set its sights on operations between Nairobi and other towns, even as the firm remains embroiled in a spiky regulatory hurdle with the National Transport and Safety Authority (NTSA).

The expansion plan is indicative of the company's intent to stay put in the domestic market, despite the ongoing dispute with NTSA on licensing.

SWVL General Manager for Kenya, Sivachi Muleji, explained that the company's hub and spoke model would make more sense, leveraging on the company's presence in the Nairobi Central Business District.

“The hub and spoke model would make more sense to us. Upcountry commutes already account for a significant fraction of trips out of the CBD. This presents a huge market for us to capture,” Muleji told Citizen Digital in an interview.

The matatu hailing platform has sought to drive disruption into the public transport system through the creation of order and efficiency, incorporating other industry pioneers including Little and Safari Express.

However, the NTSA has frozen its license alongside that of Little, and SWVL has continued operations in defiance, holding out for an amicable resolution to the dispute.

“The digital disruption in transport is here and it wouldn’t be a case of whether the regulator wants it or not. Given the current laws, we will never comply as they are no provisions for our model of operations,” Muleji added.

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