Any time soon, matatus will no longer be allowed to collect physical cash in Kenya. The country’s National Safety and Transport Authority (NTSA) has awarded licenses to leading telecom company, Safaricom and 28 others to offer cashless payment services in public service vehicles (PSVs) in Kenya, paving the way for a ban on the use of cash in public transport.

Once the system is in place, all passengers will need to pay their fares through mobile money platforms, giving the government access to their identity and personal contact information needed to fight the Covid-19 pandemic.

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Here Is What You Need To Know

• In a statement, NTSA said the 29 licensed companies will offer a platform for the digital payment of transportation costs. 
• The latest development is in response to a June 16, 2020 call for tenders in which the NTSA solicited tech companies to install mobile software and web applications for nearly 200,000 matatus (minibuses) in the country.
• The digital transport fee collection system will also have the technical capacity to trace the journey of passengers as part of the fight against the coronavirus disease.
• Companies granted a licence to offer the cashless fare system include payment and mobile service providers such as Safaricom, Tracom, Craft Silicon, JamboPay and Cellulant, as well as banks including KCB Bank Kenya and NCBA.
• The NTSA has yet to announce full details of the new digital fare payments system or a timescale for its rollout.

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