Cofek vows to put brakes on new PSV pay system implemented by NTSA

Consumers Federation of Kenya (Cofek) has threatened to take legal action against the National Transport Safety Authority's (NTSA) plan to implement cashless fare payments for public service vehicles (PSVs) from December 1.

The representative body argued that majority of commuters were not ready for the new system due to poor and opaque implementation.

Cofek Secretary General Stephen Mutoro claimed consumer and, by extension, public interest had been sacrificed on the altar of commercial and political interests.

"PSVs will end up increasing fares to cover the 3 per cent transaction fees and the system is unconstitutional as it could be discriminatory. No mechanisms are in place to protect the consumer," said Mr Mutoro in a statement.

He said implementation of the system would occasion a massive crisis in the transport sector during the December festive season.

'My1963' and PSV's cashless payment system as presently packaged, he alleged, smacked of high-level fraud.

Cofek now wants Competition Authority of Kenya, Ethics and Anti-Corruption Commission and the Public Procurement Oversight Authority (PPOA) to urgently investigate 'My1963' and the cashless payment system with a view to finding it uncompetitive, predatory and anti-consumer and market interest.

The federation also wants NTSA to indefinitely suspend the process until they can convince Kenyans they are ready to roll out effectively.

"President Uhuru Kenyatta should order State House and or influential politicians affiliated to the so-called "SkyTeamFixers" to keep clear of the cashless payment system until the consumer interest is established," said Mutoro.

Cofek wants Attorney General Githu Muigai to reveal whether his office scrutinised the process of establishing the system and contracts, and if they conformed to the law.

Mutoro insisted the information around the PSVs cashless payment was scanty and designed to suit all except the consumer.