A parliamentary committee has recommended rejecting the National Transport and Safety Authority (Amendment) Bill, 2023, which proposed government regulation of public service vehicle fares in Kenya.

The Committee on Transport and Infrastructure presented a report to the National Assembly opposing the bill, arguing that fare controls would introduce administrative difficulties and conflict with Kenya's capitalist economic framework.

The bill, sponsored by Kimilili MP Didmus Barasa, aims to remove the current freedom public transport operators have in setting passenger fares. If enacted, Kenya would join countries like Ghana, Rwanda, Tanzania, and Germany in regulating public transport prices.

Committee's Key Concerns

  • The committee noted that Kenya's public transport sector is predominantly privately owned and operated through Saccos, companies, and individuals.
  • Introducing fare controls could clash with global and regional agreements Kenya is party to.
  • Operational costs such as fluctuating spare parts prices and unpredictable conditions require flexible pricing mechanisms.
  • Kenya’s economy operates under market liberalization principles, which have reduced government intervention since reforms in the late 20th century.

Stakeholder Opposition

  • Former Roads and Transport Cabinet Secretary Kipchumba Murkomen opposed the bill, emphasizing the importance of market forces in pricing.
  • The Federation of Public Transport Sector highlighted that many operational costs, including fuel and insurance, are already regulated.
  • The federation stressed that public transport operators face numerous compliance requirements, from labor laws to safety inspections, which increase costs and make the business low-margin.
  • They argued that public transport should operate like private businesses, adjusting fares based on demand factors such as time of day and holidays.

Next Steps

Despite the committee's recommendation, MP Didmus Barasa expressed confidence that the National Assembly will have the final say on the bill. Debate on the proposal is ongoing and expected to continue in the coming week.

Previous attempts to regulate matatu fares have also been rejected by Parliament and industry groups, underscoring the contentious nature of fare controls in Kenya's public transport sector.