Sakaja appeals for loan relief as matatu strike is suspended

Nairobi Governor Johnson Sakaja has appealed to financial institutions to temporarily ease loan repayment pressure on matatu operators after a breakthrough deal led to the suspension of a nationwide transport strike that had paralysed movement and disrupted business activities.

Sakaja made the appeal after stakeholders in the transport sector, alongside officials from the Transport, Energy and Interior ministries, agreed to suspend the strike for one week to allow further consultations on fuel prices and other concerns affecting operators.

Speaking after the negotiations, the governor said the disruption had caused hardship for thousands of Kenyans, affecting transport, trade, education and access to healthcare.

“We know people are suffering. Children have not gone to school, farm produce is stuck, the sick are stranded and businesses have been closed. I want to assure you that we have found a way forward after deliberations,” he said.

Sakaja, who acted as guarantor during the negotiations, urged banks and lenders to avoid taking harsh recovery measures against operators already struggling with rising operational costs and economic pressure.

“To financial institutions, we are in very extraordinary times. The crisis is global; let’s not take it out on our people. People are struggling, let’s not auction them. Let’s go back to work as we negotiate so that we get a solution and address the issues at hand, as their guarantor in this negotiation,” Sakaja added.

The governor’s remarks came as matatu operators formally agreed to call off the strike for seven days to pave the way for high-level talks with government officials and sector stakeholders.

Interior Cabinet Secretary Kipchumba Murkomen said the suspension was necessary to create room for dialogue and restore normal transport operations.

“There was need for negotiations with the stakeholders at a high level and they will take place within the next one week,” Murkomen said.

He added that suspending the strike would help reduce further disruption to economic activities and commuter movement.

“The strike to be suspended for one week to provide an avenue for consultations,” he said.

The strike had caused major transport challenges in several areas, forcing commuters to walk long distances while businesses and essential services experienced delays.

Federation of Public Transport Sector CEO Kushian Muchiri welcomed the ongoing talks and said operators were now hopeful of reaching a lasting agreement with the government.

“As much as we would have been happy, we are also glad that at least negotiations have started in earnest,” Muchiri said.

He however, noted that earlier engagement with the sector could have prevented the disruption witnessed over the past days.

“Had we been taken seriously on Friday we would not be here. On behalf of the transport sector, mine is to urge all our members to resume operations immediately so that we can assist our customers.”

Muchiri said the sector expected meaningful progress from the consultations within the agreed seven-day period.

“We want to assure our members that within the next seven days we shall have done the best of negotiations,” he said.

The suspension now sets the stage for a week of negotiations expected to focus on fuel costs, operating conditions and other issues raised by players in the public transport sector.