A motion has been tabled in Parliament to allow the Cabinet Secretary for Transport to determine and regulate fares for public service vehicle operators.
The National Transport and Safety Authority (Amendment) Bill, 2023, by Kimilili MP Didimus Barasa, aims to grant the Transport Cabinet Secretary substantial control over public service vehicle (PSV) fares in what could spark a clash of interests between the government and private investors within the transport sector.
If the National Assembly approves this amendment, it will squarely place the responsibility on the Cabinet Secretary’s shoulders to establish minimum and maximum fare limits for passengers using public service vehicles.
According to the text of the Bill, “The NTSA Act is amended by inserting the following new subsection – the Cabinet Secretary may in consultation with the Authority make regulations prescribing the maximum and minimum fares payable by passengers in the public service vehicles within the country.”
Kimilili MP Didimus Barasa.
The Bill further highlights that this new clause intends to ensure that pertinent stakeholders participate in formulating fare policy guidelines. The goal is to establish equitable fare rates for journeys between various points to prevent any potential exploitation of passengers.
Currently, the fare system for PSVs operates under a decentralised model where matatus independently determine their fares based on factors such as the route they ply, prevailing weather conditions, travel distance, time of day, fuel prices, and other situational considerations. This has led to rampant undercutting among operators as they strive to outdo their competitors.
By giving the Cabinet Secretary the authority to set initial fare brackets and regulate their periodic review, the amendment hopes to introduce a more controlled and standardised fare structure to benefit passengers and the transport sector. The proposal also includes mechanisms to ensure that the established fares are just and reasonable.
The introduction of this bill could, however, ignite concerns among private investors in the transport industry. This newfound intervention by the government could potentially infringe upon the autonomy they currently enjoy when setting fares. If the bill becomes law, it might disrupt the competitive landscape and prompt a reshuffling of strategies among transport operators.
The proposed amendment could also usher in a wave of deliberations across various sectors. Public transportation advocates argue that a controlled fare system could promote consistency.
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