Uhuru contests phasing out 14-seater matatus
Finance minister Uhuru Kenyatta is opposed to the phasing out of 14-seater matatus saying the plan will jeopardise government efforts to create jobs.
Speaking in Kirinyaga County on Thursday as he presented a Cheque of Sh800 million for the second phase of debt waiver to coffee farmers, Mr Kenyatta said the Treasury will oppose the move.
Transport Licensing Board has already moved to implement the policy by withholding licensing of new 14-seater vehicles.
Mr Kenyatta’s position was prompted by a petition from some matatu owners who argued that the targeted 20,000 matatus are worth Sh16 billion.
Other losses, the owners argued, include daily loss of fuel intake, wages to the employees, profit margins, local authority rates as well as taxes paid to Kenya Revenue Authority.
They fear the move will render more than 40, 000 youths jobless as well as “impoverish small scale investors in the transport industry.”
Speaking in Parliament on December 1, 2010, Transport Minister Amos Kimunya in seeking for support for the policy said high capacity public transport vehicles was the panacea for a modern road transport system and affirmed it was a government policy that the 14-seaters be phased out.
In dispelling major job loss fears, Mr Kimunya argued a 14-seater employs only a driver and a conductor.
“The maximum number of people directly employed by those vehicles is 40,000. Higher capacity vehicles will employ at least four people per bus hence cancelling out the employment loss,” he said.
Modernise transport
The decision to phase out the low capacity vehicles was mooted following evaluation measures to decongest the roads and to bring order to the industry including improvement on passenger safety and conflict.
Matatu Owners Association chairman Simon Kimutai has supported the policy saying it is welcome and will modernise the public transport system.
Mr Kimutai said cost benefit analysis so far indicate the recently formed PSV Saccos will manage the shift.
“Our earlier opposition was based on costs to be incurred in the move.
