A fresh push to bring order to matatu fares has sparked a clash between the government and public transport operators, with the industry rejecting a proposal that would allow NTSA to control what passengers pay.
Matatu owners say the plan targets fares instead of the rising costs that have made it more expensive to operate public service vehicles.
The dispute centres on the National Transport and Safety Authority (Amendment) Bill, 2023, which seeks to amend the NTSA Act No. 33 of 2012 by introducing policy guidelines on how fares charged by public service vehicles will be determined across the country.
The Bill, sponsored by Kimilili MP Didmus Barasa and currently before Parliament, proposes to give the National Transport and Safety Authority powers to regulate fares, establish a system for reviewing them and protect passengers from unfair charges.
Under the proposed changes, NTSA would have powers to set minimum and maximum fares for public service vehicles in a move aimed at protecting commuters from arbitrary fare increases.
“The proposed amendments are aimed at creating a system where relevant stakeholders are involved in developing policy guidelines for public transport fares,” Barasa said.
The proposal has, however, been dismissed by the Matatu Owners Association, which argues that the changes are based on the wrong approach and will not solve the challenges facing the transport sector.
“It will not work,” the association’s president, Albert Karakacha, said on Thursday. “We reject the bill. Let the government regulate fuel prices first before talking about regulating fares.”
Karakacha said fuel remains the biggest expense for operators and warned that controlling fares while fuel prices continue to fluctuate would make it harder for transport businesses to survive.
“Our market is liberalised. Let private operators compete freely and set their own prices based on market forces. Government should not interfere with pricing while fuel costs remain unpredictable,” he said.
He said the government's priority should be reducing the cost of running public transport by addressing fuel prices, insurance costs, vehicle maintenance expenses and the price of spare parts instead of imposing fare limits.
Karakacha also warned that introducing fare controls without tackling the real costs of operating public service vehicles could discourage investment in the sector, threaten the livelihoods of operators and affect the quality and reliability of transport services.
The proposed law also outlines new obligations for operators if it is approved by Parliament.
Among the changes, operators would be required to display fare information where passengers can easily see it as part of efforts to stop sudden fare increases.
It also gives the Transport Cabinet Secretary, in consultation with NTSA, powers to make regulations setting the minimum and maximum fares payable by passengers using public service vehicles.
The regulations would further establish a framework for reviewing fares to ensure passengers are charged fair and reasonable prices.
Operators would also have to display timetables and fare tables in visible places and put in place measures aimed at guaranteeing passenger safety.
The proposal comes at a time when commuters continue to face sharp fare increases during rainy seasons, public holidays and peak travel hours, when demand for transport rises.
Higher global fuel prices linked to the Middle East crisis have also pushed up transport costs, with fares on some Nairobi routes rising by as much as 30 per cent while passengers travelling to other parts of the country continue to pay more for long-distance journeys.