Matatu Movement Kenya has announced plans for a nationwide strike on Tuesday, August 20, in response to the ongoing challenges facing the transport industry.
Speaking during a press conference held on August 18, the movement’s leadership, led by chairman Paul Thiongo, addressed the media and outlined the key issues that have prompted this action.
One of the primary concerns raised by the movement is the abrupt cancellation of insurance policies by Invesco, which they note occurred without prior notice to policyholders.
“The regulator of insurance companies (IRA) took over the management of Invesco insurance without giving prior notice,” said the chairman.
As a result, the matatu operators have called on the government to implement a mandatory one-month notification period before any insurance cancellations can take effect.
“As leaders of the transport business, we request the government to be giving notice of at least one month to the policy holders before they cancel insurance policies.”
Also Read: Insurance Company Placed under Statutory Management; What it Means
They are also urging the Inspector General to instruct law enforcement officers not to impound vehicles insured with Invesco until their current policies have officially expired.
Another issue highlighted by the Matatu operators is the compensation limit set by the Insurance Regulatory Authority (IRA) under Cap 487.
Matatu Operators Decry Insurance Limit
According to the chairman, the current law caps payout at a maximum of Ksh 250,000, which leaves vehicle owners vulnerable to major financial losses, especially when the insured value can reach up to Ksh 1 million.
The movement believes this situation has created a sense of insecurity among matatu operators, as they often rely on insurance coverage that previously extended to amounts of 3 million and below.
“We feel exposed because the insurance company used to insure about 3 million and below but now the owner of the vehicle will have to cater for the rest of the amount,” said Thiongo.
The leadership also expressed concerns over the limited number of stable insurance providers in the matatu industry, noting that only two companies are currently operating.
“Currently as we speak, we only have two company that is AMACO and Direct Line Insurance company that is operating within the matatu industry,” they said.
The chairman notes that this has led to a troubling trend of vehicles being auctioned off, with reports indicating that around 100 vehicles are being auctioned daily in Nairobi alone.
He highlighted the impact of these auctions, which have resulted in many members losing their businesses and livelihoods.
Matatu Operators Call for Government Intervention
In light of these challenges, the Matatu Movement is calling for immediate government intervention to support the transport industry and ensure its survival.
“We are calling upon the government for the support to be able to make sure that there’s a survival in this mess of the transport industry,” said the chairman
Also Read: Matatu Owners Give Govt New Ultimatum After Aborted Strike
Also, they stress the importance of communication and proper notification before any legal judgments are made regarding vehicle ownership and auctioning.
The movement believes that no decisions should be taken without consulting the relevant stakeholders, as each vehicle is registered under a specific owner and Sacco.
Consequently, the matatu operators have issued a two-day ultimatum to the government for their issues to be addressed, failure to which they note that business will not proceed as usual.
“On Tuesday, we are saying if our issues will not be addressed, we are going to down our tools and vehicles will not be on the road until that issue of auctioneers and insurance resolved,” they added.
Follow our WhatsApp Channel for real-time news updates.
https://whatsapp.com/channel/0029VaB3k54HltYFiQ1f2i2C
