The Government has been accused of trying to eliminate matatus from Nairobi.
Speaking at a press conference on Tuesday, Dickson Mbugua, the chairman of the Matatu Welfare Association, said the introduction of 27 National Youth Service (NYS) buses on some city routes and plans to bring in 50 more meant the Government would eventually take control of the transport sector.
The association said the Government did to consult matatu stakeholders before introducing the NYS buses on their routes.
However, Mbugua said if the Government intended to drive matatus out of business, then it should compensate the owners.
The association also accused the Government of price undercutting. The NYS buses were introduced at a base fare of Sh50, which was further lowered to Sh20.
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Lower fares
“Matatus and NYS buses cannot compete favourably because the NYS certainly has leverage,” the association said in a statement.
The members said it was unfair for the Government to set lower fares for NYS buses, which are funded by the taxpayer, while matatus pay exorbitant rates in licences and taxes.
“The matatu industry employs more than 50,000 young people. Pushing us out of business only worsens unemployment in the country,” Mbugua said.
According to Mbugua, 60 per cent of matatus have outstanding loans, and introducing NYS buses would make it impossible for their owners to pay the lenders.
Members of the association said they were open to dialogue. “We cannot fight with the President because we know we will be fighting a losing battle. We want an interactive session, either with the President or the Cabinet secretary for Transport,” said Mbugua.
