Transport Sector in Kenya Needs Urgent Reforms
Kenya's transport sector is crying for urgent attention by authorities. Hardest hit are the buses and matatus. One of the largest companies in public transport, the famous Kenya Bus Services, is struggling to stay afloat.
Most of its minibuses under the Metro Shuttle brand have been impounded by creditors. General Motors, the biggest of the creditors, is having a hard time keeping smaller creditors at bay. The rush for most of KBS's assets has begun. Nearly 2000 workers have been sent on compulsory leave; their future hangs in the balance. A symbol of everything Nairobian, KBS may have to pull the plug and call it a day.
What is really saddening is that KBS is the casualty of the new unregulated public transport sector. Its main bus service, Bustrack, which carries most of Nairobi's commuters faces serious problems too. Thankfully many of its old buses are still on the road. Observers believe KBS's woes started after the transport sector reforms were introduced last year. Popularly known as the Michuki reforms, the changes saw matatus and buses fitted with speed governors and safety belts. A good idea but not for the bus sector.
KBS sunk millions into the reforms. Many of its buses remained grounded as they were fitted with safety belts and speed governors. Unfortunately, just as the company was struggling to cope with bad roads and overdue payments, its monopoly on the CBD bus routes was lifted. In came City Hoppa and company. The poor infrastructure in the name of bad roads started gnawing deep into KBS' pockets. Now the giant is ailing; the government on the other hand shows no signs of intervening to sort out the transport mess.
KBS is an essential service provider. It needs to have the industry it is working in regulated. Allowing unfair competition will see more Kenyans offloaded into the already large jobseekers' courtyard. The country reels from 15% unemployment rates and least needs more unemployed.
The government needs to sort out the public transport sector.
It is not only the KBS that is suffering. Matatus too are bearing the brunt of operational costs that continue to rise. Increased fuel costs and cut throat competition has led most to rue the day they went into this business.
The profits are razor thin. Industry sources point out that most matatus are being impounded by auctioneers. The public transport industry is homegrown. It needs healthy regulations to spur its growth. The government needs to act right away.
Most of its minibuses under the Metro Shuttle brand have been impounded by creditors. General Motors, the biggest of the creditors, is having a hard time keeping smaller creditors at bay. The rush for most of KBS's assets has begun. Nearly 2000 workers have been sent on compulsory leave; their future hangs in the balance. A symbol of everything Nairobian, KBS may have to pull the plug and call it a day.
What is really saddening is that KBS is the casualty of the new unregulated public transport sector. Its main bus service, Bustrack, which carries most of Nairobi's commuters faces serious problems too. Thankfully many of its old buses are still on the road. Observers believe KBS's woes started after the transport sector reforms were introduced last year. Popularly known as the Michuki reforms, the changes saw matatus and buses fitted with speed governors and safety belts. A good idea but not for the bus sector.
KBS sunk millions into the reforms. Many of its buses remained grounded as they were fitted with safety belts and speed governors. Unfortunately, just as the company was struggling to cope with bad roads and overdue payments, its monopoly on the CBD bus routes was lifted. In came City Hoppa and company. The poor infrastructure in the name of bad roads started gnawing deep into KBS' pockets. Now the giant is ailing; the government on the other hand shows no signs of intervening to sort out the transport mess.
KBS is an essential service provider. It needs to have the industry it is working in regulated. Allowing unfair competition will see more Kenyans offloaded into the already large jobseekers' courtyard. The country reels from 15% unemployment rates and least needs more unemployed.
The government needs to sort out the public transport sector.
It is not only the KBS that is suffering. Matatus too are bearing the brunt of operational costs that continue to rise. Increased fuel costs and cut throat competition has led most to rue the day they went into this business.
The profits are razor thin. Industry sources point out that most matatus are being impounded by auctioneers. The public transport industry is homegrown. It needs healthy regulations to spur its growth. The government needs to act right away.
posted by Kelele Leo @ 1:45 PM
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