Saturday, November 29, 2014 City gears up for cashless matatu drive

Matatu Owners Association chairman Simon Kimutai addresses journalists during the launch of a pay card dubbed‘My 1963’at the Laico Regency Hotel in Nairobi on May 27, 2014. Kimutai said that Nairobi is ready for the new mode of payment that will be launched on November 30, 2014 at the Kencom bus stop. PHOTO | SALATON NJAU |  NATION MEDIA GROUP

By VINCENT ACHUKA
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By THOMAS KARIUKI
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In Summary

• Those sued are the National Transport and Safety Authority, the Cabinet Secretary for Transport, his principal secretary, the Traffic Commandant and the Attorney-General.
• By Friday evening, Matatu Owners Association, which is distributing the My1963 cards in conjunction with Safaricom, said they had given out 300,000 cards to commuters this week and were expecting to activate another 200,000 on Sunday.
• Only one transport company observed Fergie Transporters plying the Nairobi-Rongai route had entirely gone cashless.

Just hours to the deadline of the ban on cash payments in public service vehicles within Nairobi, the city faces a possible transport crisis as a majority of commuters are yet to acquire the cards and don’t even understand how the system will work.

This is despite assurances from the Matatu Owners Association that Nairobi is ready for the new mode of payment that will be launched on Sunday morning at the Kencom bus stop by Transport Secretary Michael Kamau.

A case filed at the Milimani law courts by a matatu owner challenging the legality of the new system failed to stop the expected launch after presiding Judge Weldon Korir ordered the respondents to file responses to the suit on Tuesday when the case resumes.

In the suit, Mr James Maina Mugo, through lawyer Harrison Kinyanjui, argued that the system is a unilateral change of Kenya’s fiscal procedure which stipulates that only the Central Bank of Kenya can formulate and effect Kenya’s monetary policy.

Those sued are the National Transport and Safety Authority, the Cabinet Secretary for Transport, his principal secretary, the Traffic Commandant and the Attorney-General.

“A law supporting the cashless system is non-existent and the government is yet to table the expected changes in Parliament for approval, which amounts to a gross violation of the rights of Kenyans who use public transport,” Mr Mugo argued.

MORE TO BE ACTIVATED
And with all indications that there would be no extension of the deadline effective midnight tonight, a spot check by the Sunday Nation this past week showed transport companies in a rush to equip their commuters with the cards.

By Friday evening, Matatu Owners Association, which is distributing the My1963 cards in conjunction with Safaricom, said they had given out 300,000 cards to commuters this week and were expecting to activate another 200,000 on Sunday.

Additionally, they have given out at least 10,000 Point of Sale machines to read the cards beginning Monday.

“You know Kenyans characteristically do things at the last minute and will only do something when they really need to do it so we are expecting a surge in demand for the cards today,” said Matatu Owners Association national co-ordinator Albert Karagacha, who was upbeat about the preparations made so far.

“To counter the expected demand, we have deployed 5,000 agents within Nairobi to issue the cards, and some of them will be visiting social places (Sunday), including churches and entertainment joints,” he added.

“I can assure you there will be no crisis tomorrow. Those without cards can still get them before they board as agents will be at all major terminuses to assist.”

DOUBLE SYSTEMS

The association said 69 saccos within Nairobi had complied, while the Kenya Bus Service, which runs the Abiria Card in conjunction with KCB, said they had installed point-of-sale systems for reading the cards in more than 260 buses in Nairobi, and that commuters could load their cards through agents spread out in the city.

“They have options to load their cards through the more than 7,000 KCB agents, mobile banking, as well as all the bank’s ATMs and branches,” said Elias Alando, Kenya Bus Service operations manager.

However, by Saturday, less than 24 hours to the deadline, a fairly large percentage of PSVs were still accepting cash payments, with a few running the two systems simultaneously.

Commuters using Githurai 45 Travellers Sacco, Compliant Management Limited, Embassava Sacco, Jesmatt Travellers and Kilele Sacco had the option of paying using cash or any of the three cards 1963, Beba Pay and Abiria Card.

But a majority of those who paid cash said they were yet to acquire the cards.

“I will get one when the situation really forces me to, but at the moment, I cannot commit myself to another card as I have too many in my wallet already,” said Mark Omollo, a commuter on the Kariobangi Travellers matatu.

COMPLETELY CASHLESS
Only one transport company observed Fergie Transporters plying the Nairobi-Rongai route had entirely gone cashless.

Its owner, Beutah Maroka, said revenue had improved significantly by between 30 and 40 per cent.

“For the last five months, passengers using any of our 20 matatus have been using pay cards, and both the passengers and crew love it because we have given them incentives,” he said.

“For instance, if a passenger has a card and they are told the machine is not working, they are obligated to demand a free ride,” he said.

“On the other hand, the crew get a bonus if there is an increase in revenue.”