Neighbourhood Kenya 20th Edition - Kara

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TRANSPORT Mixed reactions over phasing out of 14-seater matatus Stakeholders in the matatu industry are split on the benefi ts of the phasing out of the 14-seater minivans, which is currently being undertaken by the Transport ministry. In January 2011, the Transport Licensing Board (TLB) ceased issuing new licences to the low capacity matatus and observers have noted that the phasing out will be more visible this year when the exercise enters its second year. However, matatus that were in business before the policy came into effect have had their operating permits renewed upon inspection. But last month, former Finance minister Uhuru Kenyatta and his Cooperatives counterpart Joseph Nyagah threw a spanner in the works by publicly opposing the phasing out. Speaking after receiving a petition from some matatu owners, Uhuru reportedly announced that Treasury would oppose the move. The petition argued that the targeted 20,000 matatus are worth Sh16 Billion and that the cumulative losses include daily loss of fuel intake, wages to the employees, profit margins, local authority rates as well as taxes paid to Kenya Revenue Authority. On his part, Nyagah said wananchi are bound to suffer if the low capacity matatus are removed from the road. The minister said the market dictates smaller public service vehicles to go to the grassroots and the big buses to bigger towns. “It is okay to have buses in bigger towns like Nakuru and for long distances like between Nairobi-Mombasa or Nairobi- Bungoma. A 70-seater bus can fi ll quickly there but would take a whole day to fill in a small town,” Nyagah said. But the Transport ministry appears resolute on the policy. Transport Permanent Secretary Cyrus Njiru says no new licences have been issued to the 14-seaters since January last year, adding only the existing ones had their licences renewed. “We have seen new big buses being brought onto our roads to share the work with the existing 14-seaters but which will progressively pave way for the higher capacity PSVs,” said Njiru. 14.
TRANSPORT But like Nyagah, Matatu Welfare Association chairman Mr Dickson Mbugua argues that the small matatus “are here to stay” as the high capacity vehicles would fi nd it unhard to operate in certain areas. “There will be a vacuum in these areas when the big matatus run away because of low business,” he said. Mbugua says his association has been exerting pressure on the ministries of Transport and Local Government to come up with a strategy that will see some 14- seaters remain in business in some areas. “For the population in the rural areas and those in small towns, the 14-seaters will forever remain useful,” said the chairman. Matatu Owners Association Chairman Mr Simon Kimutai also says some matatus should be allowed to operate in some areas, albeit on a need basis. He, however, notes that the transport ministry has agreed to “some exceptions” for the small matatus to operate. Both Kimutai and Mbugua said the big buses have started fi lling in the void left by ageing matatus in major towns. However, for Mbugua, this transition has left some voids, as the number of new buses does not correspond with that of the matatus being phased out. “I can tell you for sure that in Nairobi for instance where we have 16,000 PSVs, the combined number of new buses is now 3,000,” said Mbugua. Kimutai, raised concerns that the void left by the 14-seaters in the rural areas was now being fi lled by “Proboxes”, masquerading as taxis. He also said the higher capacity buses are yet to start operating inter-cities or intertowns. “We still have the small vehicles being used by passengers moving from one town to another; instead, they prefer CBD to estates within a given town,” he said. Industry players and lawmakers are also concerned about the job losses to be occasioned by the policy, saying up to 60,000 youths are likely to lose their jobs. Juja MP William Kabogo posed inside parliament: “Is the minister aware that the directive is already negatively impacting on the livelihoods of over 60,000 young persons, who are directly employed in the sector” But the Transport minister Amos Kimunya dismissed the assertions as untrue. “We have 22,000 14-seater matatus out of the 79,000 PSVs. Typically, a 14- seater matatu creates employment for a driver and a conductor. So, maximum people who will be directly employed by those vehicles will be 44,000,” stated Kimunya. He added that the 22,000 matatus were still on the road but would be phased out progressively. Kimutai endorsed the intended changes, saying they would herald fewer accidents and bring back sanity onto the roads. In 2011 alone, over 3,200 people lost their lives in accidents caused mainly by human error. “Because one bus will cost an investor roughly Sh4 million then we are likely to have owners seriously looking after their businesses,” he said. But for Mbugua, the high cost of buying the new matatus might cause a vacuum since the envisioned Sacco funding will highly depend on their size and fi nancial muscle. Kimunya said the ministry would stick to the policy, as it was viable. “I have no intention of considering rescinding this decision because it was arrived at by the stakeholders and we are convinced that the passengers and the industry players can benefi t from it.” The policy is being implemented by the Transport ministry –through Transport Licensing Board and is aimed at reducing traffi c jams and fi nally restore order to the sector, including improvement on passenger safety and confl ict. It is part of a wider scheme to transform Nairobi transport into world-class. It is part of the Integrated Transport System where passengers will seamlessly move from one mode of transport to another. Njiru announced that the Syokimau train station is 70 per cent complete and that the laying of the railway line from the station to Embakasi was underway. The rehabilitation of the railway line from Nairobi to Ruiru was also in progress, said Njiru, adding that tenders for the construction of the line connecting Syokimau and Jomo Kenyatta International Airport (JKIA) will soon be out. “We need all modes of transport: rail, road and airports are being rehabilitated,” he said. We have 22,000 14-seater matatus out of the 79,000 PSVs. Typically, a 14-seater matatu creates employment for a driver and a conductor. So, maximum people who will be directly employed by those vehicles will be 44,000. 15.
Page 1: MARCH 2012 20TH EDITION neighbourho
Page 4 and 5: COVER STORY From Page 3 New justice
Page 6 and 7: PERSPECTIVE Italian Ambassador: The
Page 8 and 9: security Police Reforms: Is a civil
Page 10 and 11: FOCUS As 2012 maneuvers the teethin
Page 12 and 13: ADVERTORIAL HIGH QUALITY MEAT PRODU
Page 16 and 17: ECONOMY Cartels reap from miseries
Page 18 and 19: INFRASTRUCTURE Blessings and curse
Page 20 and 21: MESSAGE NEWS One of the key pillars
Page 22 and 23: NEWS 02 Feb - KARA Lamu County Prof
Page 24: Partnerships for the awards are inv

Neighbourhood Kenya 20th Edition - Kara

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