City Hall has proposed sweeping regulations aimed at streamlining the matatu industry in Nairobi by limiting the number of vehicles per route, enforcing cashless payments, and regulating bus fares.
Under the new regulations, the Nairobi City County Executive Committee Member (CEC) for Public Transport and Mobility will have the authority to determine the number of operating permits issued for each route. The CEC will be guided by capacity demands and the need to decongest specific routes.
“Any operator shall be allowed to vary the number of vehicles up to a variance of 10 per cent of the authorised route capacity. Any variation beyond 10 per cent must be authorised by the CEC. The CEC shall publish the capacity demands for every route annually. In case it is not published, the population growth rate shall be used to calculate demand,” states a section of the draft regulations.
The proposed Nairobi City County Permit to Operate Regulations, 2025 are aimed at improving efficiency and easing congestion in the city. All matatu Saccos and companies operating within Nairobi will be required to apply for permits valid for five years.
Travellers at Tea Room matatu terminus in Nairobi in this picture taken on December 18, 2023.
Photo credit: Billy Ogada | Nation Media Group
However, the county has not disclosed the cost of acquiring these permits.
Upon approval, matatu operators will be required to adopt a cashless fare payment system, including installing fare collection machines in their vehicles.
Regarding fare pricing, each Sacco will be required to submit a bus fare schedule to the county before being issued a permit. The fare table must reflect charges by time of day, day of the week, type of passenger, and whether passengers are seated or standing.
Notably, infants seated on laps and uniformed school-going children will travel for free within the county.
The county also plans to designate and gazette specific public service terminals for urban transport, requiring operators to pick and drop passengers only at these locations. Offenders risk a fine ranging from Sh50,000 to Sh100,000 and potential revocation of their licences.
Matatu touts call out for customers at the Kencom bus stop in Nairobi.
Photo credit: File | Nation Media Group
At these designated terminals, no touting will be allowed, passengers must queue to board vehicles, matatus may not remain idle for more than 40 minutes and picking and dropping passengers at petrol stations will be prohibited.
Section 12 of the draft regulations adds: “No driver, conductor, or any other person shall importune passengers within any terminal by calling out or employing others to solicit for passengers.”
Permit applications will be vetted by an ad hoc technical committee, and the county minister may reject applications based on several grounds including bankruptcy, licensing status under the Traffic Act, route congestion, or inadequate infrastructure.
However, the proposed rules have stirred sharp criticism from operators.
During a public participation forum held Tuesday at Greenpark Terminus, matatu operators called on the county to withdraw the regulations.
Mr Joseph Kagai of Sowetam Travellers Sacco accused the county government of interfering with private sector operations: “How will the county determine the number of operators on a certain route? What will happen to the other buses? This is interference. We urge the county to vacate all these regulations and work with us to develop new ones.”
Matatus at Kenneth Matiba Street in Nairobi on March 28, 2023.
Photo credit: Dennis Onsongo | Nation Media Group
Mr Wilfred Bosire, Secretary General of the Mass Mobility Operators Association, criticised the county for failing to involve stakeholders in drafting the regulations:
“We have not been involved at all. Gone are the days when policies were made in boardrooms. We want inclusive participation. Let there be a joint committee with Sacco representatives to draft fair regulations.”
In response, Mr Moses Kuiyaki, Director of Mobility at City Hall, defended the proposals, saying the county’s aim is to restore order and transparency in the sector:
“We want to introduce standards and ensure fairness in the issuance of permits. We’ve had cases where matatus are blocked from operating without clear reasons. We need a transparent system that also allows for new routes.”
