PSV owners in court over cashless fare system rule

President Kenyatta is assisted by bus conductor Absalom Omuhatia to pay matatu fare after registering for the new cashless payment system for public service vehicles at State House, Nairobi, on November 5, 2014. Also with him were Transport Cabinet Secretary Michael Kamau (standing) and Safaricom chief executive Bob Collymore. PHOTO | PSCU

What you need to know:

  • Mr Mbugua said that the CS, Principal Secretary Transport and NTSA had consulted them in formulation of the NTSA Regulations, 2013 but failed to do the same during the process of implementation.

The Matatu Welfare Association has broken ranks with the government yet again over the planned implementation of the cashless fare system for public transport vehicles.

In an urgent application filed at the High Court on Friday, through lawyer Henry Kurauka, the association, suing through Dickson Mbugua (national chair), Sammy Gitau (secretary-general) and Basil Nyagah (deputy secretary-general), said many issues remain unresolved despite the government’s haste to roll out the new system.

The National Transport and Safety Authority (NTSA) had in a letter dated December 9, 2014 directed the association, its members and other (PSV) operators to produce cashless gadgets as a mandatory pre-condition for their vehicles inspection for purposes of securing road service licences.

Mr Mbugua said most of their members’ TLB licences will expire in the next few days, but given the precondition for renewal, “there is a likelihood that most of our members will not be allowed to operate.”

OUT OF SERVICE

This condition has already rendered over 3,800 PSV vehicles out of service for the months of December 2014 and January 2015.

Transport Cabinet Secretary Michael Kamau had by a legal notice dated December 16, 2013 introduced section 7(f) of the NTSA Regulations which compelled the association and its members to ensure that passengers are issued with tickets or receipts for fare paid through the cashless fare system.

It was to operate from July 1, 2014.

Mr Mbugua said that the CS, Principal Secretary Transport and NTSA had consulted them in formulation of the NTSA Regulations, 2013 but failed to do the same during the process of implementation.

“The cashless system has many challenges which have not been addressed such as its operability, adequate supply of the tills by service providers, availability of cards to commuters, and real time accountability to users” says Mr Mbugua in his court papers.