Press Center | Freight Shipping Logistics News
Apr 15, 2014
General
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Tough traffic rules imposed by the national government are aimed at phasing out 14-seater matatus, players in the industry claimed Tuesday.
Tough traffic rules imposed by the national government are aimed at phasing out 14-seater matatus, players in the industry claimed Tuesday.
Matatu Welfare Association (MWA) national chairman Dickson Mbugua accused Transport Cabinet Secretary Michael Kamau, Principal Secretary Nduva Muli, Nairobi Governor Evans Kidero, Matatu Owners Association national chairman Simon Kimutai and an unnamed prominent businessman of scheming to phase out the matatus.
The MWA official claimed that the new regulations will phase out the matatus and pave way for 200 buses.
Speaking to the Nation on telephone Tuesday, Mr Mbugua claimed the buses will be imported from India and unveiled in Nairobi in June.
He claimed the buses would operate in Nairobi, Mombasa and Kisumu as replacement for matatus.
“Their aim is to push matatus out of business for them to introduce buses in Nairobi, Mombasa and Kisumu,” he claimed.
Mr Mbugua called on President Uhuru Kenyatta to intervene warning that about 200,000 jobs would be lost if matatus are phased out.
He further warned that financial institutions and Saccos which offered loans to matatu owners for the purchase of the vehicles might incur losses of upto Sh9.6 billion.
“Countrywide there are about 100,000 matatus. If they are locked out, 200,000 matatu drivers and conductors will be rendered jobless,” he warned.
Thousands of matatu owners, he argued, would lose their livelihoods while the government and counties would lose revenue generated from the sector.
Efforts to reach Mr Kamau or his PS for comments proved futile as they could not be reached on phone.
Nairobi Transport executive Evans Ondieki also failed to respond to our calls.
Contacted for comment, Mr Kimutai termed Mr Mbugua’s claims as untrue.
The MOA national chairman said there was no way he could import buses to replace matatus since he is a major investor in the industry.
He argued that he has protected the industry for 20 years and will continue to defend matatu owners’ interests.
He said: “I can never betray investors in the matatu industry as I am also an interested party.”
Mr Kimutai said he was against foreigners investing in public transport since majority of Kenyans have invested heavily in the sector.
Matatu Welfare Association (MWA) national chairman Dickson Mbugua accused Transport Cabinet Secretary Michael Kamau, Principal Secretary Nduva Muli, Nairobi Governor Evans Kidero, Matatu Owners Association national chairman Simon Kimutai and an unnamed prominent businessman of scheming to phase out the matatus.
The MWA official claimed that the new regulations will phase out the matatus and pave way for 200 buses.
Speaking to the Nation on telephone Tuesday, Mr Mbugua claimed the buses will be imported from India and unveiled in Nairobi in June.
He claimed the buses would operate in Nairobi, Mombasa and Kisumu as replacement for matatus.
“Their aim is to push matatus out of business for them to introduce buses in Nairobi, Mombasa and Kisumu,” he claimed.
Mr Mbugua called on President Uhuru Kenyatta to intervene warning that about 200,000 jobs would be lost if matatus are phased out.
He further warned that financial institutions and Saccos which offered loans to matatu owners for the purchase of the vehicles might incur losses of upto Sh9.6 billion.
“Countrywide there are about 100,000 matatus. If they are locked out, 200,000 matatu drivers and conductors will be rendered jobless,” he warned.
Thousands of matatu owners, he argued, would lose their livelihoods while the government and counties would lose revenue generated from the sector.
Efforts to reach Mr Kamau or his PS for comments proved futile as they could not be reached on phone.
Nairobi Transport executive Evans Ondieki also failed to respond to our calls.
Contacted for comment, Mr Kimutai termed Mr Mbugua’s claims as untrue.
The MOA national chairman said there was no way he could import buses to replace matatus since he is a major investor in the industry.
He argued that he has protected the industry for 20 years and will continue to defend matatu owners’ interests.
He said: “I can never betray investors in the matatu industry as I am also an interested party.”
Mr Kimutai said he was against foreigners investing in public transport since majority of Kenyans have invested heavily in the sector.
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