Matatu Owners Association (MOA) plans to invest Sh200 million to set up or acquire an insurance company.

The move is intended to shield MOA members from buying covers from insurers, who when they close shop leave them exposed to risk and in debt.

Addressing matatu owners and crew members at Tononoka Social Hall in Mombasa last week, MOA National Chairman Simon Kimutai said they were exploring the possibility of buying Invesco Insurance Company, which is under statutory management.

A Public Service Vehicle after an accident. Matatu operators plan to acquire an Insurance company to shield their businesses. Photo:File

"We want to buy 70 per cent stake in the insurance company," he said.

According to matatu owners, eight insurance companies have either gone under or plunged into management problems.

During the meeting, Mombasa Deputy Traffic Enforcement Officer Kennedy Osando told the operators the ‘Michuki Rules’ were back and they must fully comply.

"Matatu operators and traffic police officers involved in bribe giving and taking will be arrested," Osando said.

MOA Mombasa Chairman Ali Batesi asked Mombasa Municipal Council to establish stages so that Matatus don’t obstruct roads in the City.

"Council officials should tell us why they collect money from us yet they don’t construct stages," said Bates.

MOA wants the Government to raise the speed limit to 100 km per hour to stop the temptation by motorists to tamper with speed governors.

The association said drivers tamper with speed governors because the 80km per hour limit is too low.

He said 80 per cent of accidents in the country were due to human error.

"Most of the accidents occur when motorists drive beyond the speed of 100km per hour. The current speed limit is too low and tempts drivers to switch off speed governors," said Kimutai.

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