Matatu Operators Uncover NTSA, 4 Other Failures Post Fuel Price Increase
In response to the recent increase in petroleum prices, the Federation of Public Transport Sector (FPTS) has outlined five requests for the government.
In a statement dated September 15 and signed by FPTS Chairman Edwins Mukabanah, the association noted that the government has failed to protect the matatu sector from the debilitating effects of the rising cost of living.
According to the association, this resulted in private investors in the market incurring losses and leaving the sector.
“The Federation would like to inform the government that, whereas private car fuel consumption is a consumption activity and, therefore, requires no subsidy, public transport fuel consumption contributes to the production of essential services that require cushioning,” read a portion of the statement.
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The Federation also objected to the increased interest rates on loans, which now exceed 20 percent. In this vein, they bemoaned the government’s failure to provide a Public Service Vehicle (PSV) funding mechanism comparable to the Agricultural Finance Corporation (AFC) in the agricultural sector.
The NTSA Failure
The federation also emphasized that the National Transport and Safety Authority (NTSA) is unable to regulate supply and demand, stating that the market is oversupplied with vehicles.
According to matatu operators, the number of motorists purchasing vehicles has increased since the end of the pandemic, and the NTSA lacks an effective mechanism to regulate the country’s supply.
In addition, according to Mukabanah, the government is reticent to collaborate with PSV operators to combat corruption in the industry. They criticized the Kenya Kwanza government for failing to implement a cashless system and instant penalties for lawbreakers.
In addition, the Federation exposed the insurance companies for failing to pay claims, resulting in investors losing money through auctioneering cartels.
“Despite our complaints, the Insurance Regulatory Authority is doing nothing about it.”
The federation invited the government to survey Rwanda to determine what needs to be done to establish an efficient and competitive public transport system in which PSV services can be provided sustainably.
The Energy and Petroleum Regulatory Authority (EPRA) recently increased petroleum prices by Ksh16.96, Ksh21.32, and Ksh33.13 per liter for gasoline, diesel, and kerosene, respectively.
This implies that the prices in Nairobi will now be Ksh211.64, Ksh200.99, and Ksh202.61.
Matatu Operators Uncover NTSA, 4 Other Failures Post Fuel Price Increase
