Commuter moves to court over cashless fares

The newly-introduced cashless payment of fares in public service vehicles (PSVs) recently launched by President Uhuru Kenyatta has been challenged in court.

In a petition, Joseph Mugo, a commuter, is seeking to have the scheme invalidated, arguing that it is as gross violation of the freedom of choice and movement.

Through lawyer Harrison Kinyanjui, Mr Mugo argues that the new scheme, which takes effect next week (December 1) purports to outlaw the use of money whereas only the Central Bank of Kenya (CBK) enjoys the legal mandate to change Kenya's monetary policy. 

Mugo is seeking to have the National Transport and Safety Authority (NTSA), the Transport cabinet and principal secretaries, and the Traffic Commandant prohibited from implementing Legal Notice No 75 of 2014, which contain the new regulations. 

Mr Kinyanjui argues that notes and coins remain the exclusive legal tender in the country, and that the unlawful demand for the use of alternative modes of payment amounts to criminalising payment of bus fare in cash. 

The lawyer argues that Kenya Commercial Bank (KCB), Equity Bank, Co-operative Bank, Family Bank, Fibre Space Ltd and Safaricom Ltd have devised a Near Field Communications (NFC) card that strictly operates online and travellers were in the dark about the charges of the service. 

"The cashless mode of paying fares unlawfully usurps the powers of the CBK and the Treasury cabinet secretary must consult all stakeholders before amending the National Payment Systems Act," submitted Kinyanjui.

Bank account

The lawyer contends that the new regulations have not been approved by Parliament and that the effect of launching the payment for PSVs was to force commuters in the country to have a bank account as well as an e-mail account in order to travel.

He adds that the promoters of the new system were carrying out deceptive advertisements on the service informing them about its financial implications.

Mugo cites Article 231(2) of the Constitution, which stipulates that only the Central Bank of Kenya has powers to formulate and effect such changes.

According to the lawyer, Section 4(c) of the CBK Act demands consultations between the relevant Cabinet secretary and the bank on changes in the monetary policy.

He also faults CBK for failing to publish in the Kenya Gazette the designated payment system as required by law. Equity Bank, KCB, Co-operative Bank, Family Bank, Fibre Space Limited and mobile service provider Safaricom have been named as interested parties in the matter.