Paying Fares For Use Of Public Transport In Kenya To Go Digital

Bids inviting tech companies to install mobile software and web applications for approximately 200,000 matatus plying Kenyan roads will close on June 16 2020, signalling a strong move by Kenya ‘s government to phase out cash payment for use of public transport in the country. According to the country’s Ministry of Transport, the measure would revolutionise the industry and also ensure convenience, security, and accountability all at once in the sector.

National Transport and Safety Authority (NTSA) director general George Njao
National Transport and Safety Authority (NTSA) director general George Njao

“The cashless system will also provide a platform for development of an effective contact tracing application to support the government effort in addressing the coronavirus pandemic. Interested applicants who may wish to register as service providers for the provision of contact tracing with a payment gateway service must submit their proposals on or before June 16,” Kenya ’s National Transport and Safety Authority (NTSA) director general George Njao said, in a tender notice published on Tuesday, May 2, NTSA advertising for bids inviting tech companies to install the mobile software and web applications. 

Here Is What You Need To Know

  •  An earlier proposal through the country’s Public Service Vehicles (PSVs) Regulations 2013 failed after it was opposed by many players in the transport industry. 
  • The soon-to-be implemented matatu cashless payment portal to be manned by the National Transport and Safety Authority (NTSA), will provide individual contact information and routes as well as fare payment details as contained in passenger manifest.
  • The data will be accessed by NTSA and other agencies tasked with curbing the spread of Covid-19, enabling individuals diagnosed with the virus to be traced easily, as well as those who came into contact with them during travel.
Kenya Road Transport: No of Motor Vehicles: Registered
Number of registered vehicles in Kenya

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“The system should have capabilities to generate detailed daily, monthly and yearly reports based on set parameters of a passenger manifest. It should support mobile money and Pesalink transactions as well as have reporting functionalities,” NTSA says.

NTSA also wants a platform that generates text-based customer receipts. The operator should also have a round-the-clock manned support centre to handle customer notifications and queries.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.