500,000 ‘to lose jobs’ in matatu phase-out

More than 500,000 people will be laid off if 14 seater Matatus are phased out, says Association of vehicle owners.Matatu Welfare Association (MWA) chairman Dickson Mbugua said the government’s decision to stop registration of the vehicles in January last year has started impacting negatively on the industry.Addressing journalists in Nairobi at the weekend, Mr Mbugua said the government should instead leave market forces to drive out the 14-seater matatus. Insecurity will rise after thousands lose their jobs, he added.

Mr Mbugua said a 37-seater matatu currently costs about Sh4.2 million, which is out of reach for many Kenyans who wish to venture into the business.“A 14-seater costs about Sh1.5 million, which many Kenyans cannot afford, and asking Kenyans to fork out about Sh4.2 million is like telling them to stop thinking about investing in the industry,” he said.Mr Mbugua, who was accompanied by vice-chairman John Katimbwa, said the best the government could have done was to manage the 14-seater matatus through various savings and credit cooperative societies (Saccos)...Click here