The National Transport and Safety Authority (NTSA) has started the process of rolling out changes in the matatu industry across the country.
A report on Tuesday, January 5, indicated that the authority had licensed 29 companies to develop software that will transform the industry into a fully cashless system.
The development is in line with NTSA’s plan to abolish the use of cash on all matatus in the country.
The companies, which include Safaricom and Kenya Commercial Bank (KCB), will be tasked with creating the software as well as web applications to regulate the Ksh420 billion industry.
The industry is estimated to have over 200,000 vehicles.
Other companies that were approved in the process include Craft Silicon of Little Cab, JamboPay, Cellulant, and NCBA Bank.
In June 2020, the authority announced the tender with the aim of transforming the industry to avoid cash interactions.
“Pursuant to section 30(2) of the NTSA Act, 2012, the authority plans to introduce mandatory use of cashless payment for all public service vehicles (PSV).
“The cashless payment system will also provide a platform for deployment of an effective contact tracing (passenger manifest) application to support the government’s effort in addressing the coronavirus pandemic,” read the notice in part.
This is the second time the state has attempted to transform the matatu industry after the first trial in November 2014 flopped.
At the time, the launch was largely opposed by the matatu operators who claimed that the system was only aimed at monitoring the transport system for taxation purposes.
The state, however, argued that the system was aimed at kicking out cartels that have infiltrated the industry as well as curb employee fraud.
