Court battle lifts the veil on Kinatwa Sacco matatu route fights

A dispute has erupted within one of eastern Kenya’s prominent matatu operators, Kinatwa Sacco, as members clash over control of lucrative public transport routes linking the eastern region to Nairobi, central Kenya, and coastal towns.

A group of members has moved to the High Court seeking to halt a planned annual general meeting (AGM), warning that it could be used to punish whistleblowers and tighten control over profitable routes.

The case also involves allegations of manipulated route allocations favouring matatus of certain members, mismanagement of funds, and the use of disciplinary threats to silence dissent.

Members accuse Sacco officials of sidelining critics and threatening to ground their vehicles.

Court documents indicate that the wrangles began early this year after a section of members petitioned the Cabinet Secretary for the Ministry of Cooperatives & MSMEs Development through the Commissioner for Cooperative Development to investigate the sacco’s management and finances.

“Petitioners filed a formal petition seeking an inquiry into gross corruption, theft of over Sh10 million, and financial mismanagement,” reads an affidavit sworn by Benson Mulinge.

The members argue that the Sacco leadership hastily announced the AGM to obstruct scrutiny.

“The timing of the AGM is not coincidental but a deliberate attempt to pre-empt and subvert the statutory inquiry,” the petition states.

Kinatwa Sacco, a transport cooperative, brings together matatu owners operating passenger and parcel services in the eastern region. Founded in the early 2000s, its fleet—mostly comprising 14-seater matatus and shuttle vans—ferries passengers and parcels along busy corridors linking Ukambani counties with Nairobi, central and the coast, making it a key player in regional mobility and small-scale trade.

Its vehicles connect Kitui with Nairobi, Thika, Mwingi, towns along the Nairobi–Mombasa corridor, Malindi, and southern border routes such as Taveta and Oloitoktok.

Court documents reveal that new Sacco members must pay an entry fee of Sh450,000 upon admission to operate their vehicles under the Sacco’s transport network.

Public transport Saccos play a central role in Kenya’s transport sector by organising routes, managing vehicle operations, and controlling access to stages that determine daily earnings.

Route control 

Petitioners allege that route control has become the focal point of a leadership struggle. They accuse Sacco officials of favouring vehicles linked to certain members when allocating profitable routes while assigning less viable routes to critics.

“The respondents have reserved lucrative routes for vehicles belonging to some top officials and their allies,” the petition claims, adding that members who question the leadership risk losing their livelihoods.

Petitioners further allege that unnamed officials have threatened to withdraw operational documents and road service licenses from vehicles owned by dissenting members, effectively grounding them and cutting off operators’ income, which depends on daily passenger collections.

“If the AGM proceeds, the respondents intend to expel the petitioners and ground their vehicles, causing irreparable harm,” states the affidavit, underscoring the escalating economic and governance stakes within the matatu sector.

Members also accuse Sacco officials of failing to provide audited financial statements and withholding loans despite regular contributions. They allege that proceeds exceeding Sh10 million from the sale of Sacco vehicles were unaccounted for.

In their petition to the government, members raised concerns about financial mismanagement, including discrepancies in proceeds from vehicle sales.

They also questioned the legitimacy of Sacco elections and the management committee’s prolonged tenure, alleging irregular installation and resistance to fresh elections.

The High Court awaits hearing the case and will determine whether the contested AGM can proceed as the governance battle within the transport cooperative unfolds. The respondents, including the Sacco and its officials, have yet to file their responses.

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