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Big Story:Kenyan Public Service Vehicles to Go Cashless In The New Year


Starting July 1 2014, all public service vehicles will be required to use electronic payment system this is according to regulations published by the National Transport Authority.

Bebapay ran by Equity Bank and Google has been a dominant cashless payment method in public service vehicles in the year 2013.M-Safari also using Near Field Communication technology for payments has largely served daily commuters in Nairobi.

Lipa na M-pesa has been a prevailing form of payment in different platforms and is likely to expand following the decision by the Transport Authority.

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“Every operator of licensed public service vehicles shall ensure that passengers are issued with tickets or receipts for fare paid and, as from the 1st July, 2014, it operates on a cashless fare system,” read the regulations in part.

Fleet management systems will also be set up to govern speed and location of vehicles with instant feedback starting February 2014, in a bid to make it easier for transport operators  and minimize on fraud in the matatu sector as well.

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However, the technology infrastructure likely to be expensive will cost passengers more than they currently part with, also monitoring drivers and conductors’ salaries expected to be regular unlike commission based on number of trips made.

Small fish in the industry seem to hit a dead end since all vehicles will require a National Transport System Authority (NTSA) license before they are allowed to operate with restrictions that will see licenses granted only to limited liability companies.

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