Association out to block cashless fare system

More than half a million jobs will be lost if the new cashless fare system is adopted, the Matatu Welfare Association (MWA) has said.

In a bid to prevent such an eventuality, MWA has moved to court to block the system's adoption.

The association wants Transport Cabinet Secretary Michael Kamau, his Principal Secretary, National Transport and Safety Authority, the director of Motor Vehicle Inspection Unit and Kenya Bureau of Standards barred from implementing the new system, arguing that doing so will drive some matatu owners out of business.

High Court Judge George Odunga directed association's lawyer Henry Kurauka to serve Mr Kamau and his Principal Secretary.

In a sworn affidavit, MWA Chairman Dickson Mbugua said the new system should be de-linked from motor vehicle inspection and TLB licensing because it does not add value to road safety and the fitness of a public service vehicle.

Mr Mbugua, however, said that they will not oppose the system if it is applied in tandem with cash for the time being until the highlighted challenges are addressed.

Compliance deadline

He said lack of preparedness has led to the system not kicking off as it should. The system's adoption has been postponed several times.

The cashless system was launched in November last year in an event that saw President Uhuru Kenyatta ride a matatu from State House, Nairobi to the Kenyatta International Convention Centre.

The deadline for compliance with the cashless system expired in December last year. The case will be heard on Tuesday next week.

Last year, Mbugua claimed the cashless system would cost the matatu industry at least Sh6.75 billion annually in taxes, adding that this would bring them to their knees.

Through this system, the taxman hopes to generate an additional Sh20 billion annually from an industry believed to rake in Sh400 million daily and up to Sh20 billion annually.