Kenya drives closer to full cashless fare mode
What you need to know:
- The new fare payment system seeks to eliminate the use of cash in matatus across the country.
- Several players have already partnered with bus companies to roll out debit cards to be used by commuters.
Four financial institutions have been cleared to bank providers of the cashless fare system, paving the way for the technology to be rolled out.
The approval was crucial as a way of protecting commuters’ deposits while ensuring that the plastic cards are interoperable.
“The CBK has cleared four banks and others are in the pipeline. CBK has vetted the vendors and approved the settlement process,” Mr Francis Meja, the director-general of the National Transport Safety Authority (NTSA), said.
NTSA is the implementing agency for the government.
“Approval by the CBK was the main challenge that held us back because public funds were involved. Now that we have got clearance, the Cabinet Secretary (for Transport and Infrastructure) will give a statement soon on the way forward,” Mr Meja said by telephone.
The new fare payment system, which is already being used by some operators, seeks to eliminate the use of cash in matatus across the country. (READ: Cash or no cash, Kenyans face payment dilemma)
Several players, including banks and payment processing firms, have already partnered with bus companies to roll out debit cards to be used by commuters.
CBK did not respond to our email enquiries on cleared providers, but KCB, Equity Bank and Family Bank are the leaders on this front while Safaricom and Google are the main technology firms.
Matatu operators have also launched a system — the 1963 app — in a bid to tap into the new rules.
EXTEND THE DEADLINE
There are three electronic cards in the market: Bebapay, which is a joint venture between Equity Bank and Google, 1963 Jinice operated by the Matatu Owners Association and Abiria Card operated by the Kenya Bus Service and KCB.
On Tuesday the Matatu Owners Association (MOA) piled pressure on the government to further extend the deadline, saying, they needed more time to create public awareness.
MOA’s Simon Kimutai said: “Our members still lack these gadgets. Few operators have complied in Nairobi because licensing of vendors was delayed. How can you talk of the entire country?”
