Kenya: Public Transport Goes Cashless
By Staff Writer
NAIROBI- Kenya's Public Transport Industry through its assosiation, Matatu Owners Association(MOA) and Matatu Welfare Association(MWA) Tuesday May 27 revealed that they were at an advanced stage on the road to introducing a cashless payment system ahead of the July 1 deadline set by the Government.
The Government, through Legal Notice No. 219 of the National Transport Safety Authority Act that was gazetted onDecember 17 last year, required all matatu owners to introduce a cashless payment system before July.
MOA’s Chairman, Simon Kimutai said they teamed up with technology firm, Fibre Space Limited, to introduce prepaid cards for use by passengers and point-of-sale terminals for owners of matatu Sacco’s.
“The launch of the card will help investors control their cash flows, increase revenue and reduce losses,” said Kimutai.
The company is also expected to install “black boxes” in all PSV matatus which will keep a video record of all the activities in the vehicles to reduce the insecurity due to terrorism.
“It is time for us in the matatu industry to embrace technology and use it to improve our businesses. Thus the main reason for partnering with this technology company to come up with a cashless payment system that will boost revenue by 30 per cent for matatu owners and bring sanity to our roads,” he said
The card also known as 1963 has been on trial pilot programme in vehicles on Ngong road, Eastlands and Waiyaki-Kikuyu routes, boosting confidence that it is ready for the market.
The industry-backed card will be the latest entrant in a field that has attracted a number of firms seeking a piece of the millions generated from matatu industry daily.
Co-operative Bank is also working on a prepaid card that uses tap-and-go technology as well as an online payment through which matatu owners will track all fare transactions in real time. Family Bank is eyeing the market with its Pesa Mob app.
Safaricom’s Lipa na M-Pesa, Google in partnership with Equity Beba Pay a Hong Kong firm Tap-to-Pay that is working with the Kenya Bus Service to pilot a pre-paid plastic called Abiria Card, are also in cashless payment market
Kimtai said this when he met members and officials of matatu Saccos from various parts of the country in Nairobi. He was accompanied by officials from MOA and Matatu Welfare Association (MWA).
General Manager of Fibre Space Limited, Mwakio Ngale, said that the new cards Mwakio (1963) will be used by commuters to pay fares on all 1963-compliant matatus and buses.
“Commuters will access these cards for free by registering with a 1963 agent. However, for their card to be activated they will be required to top it up with a minimum of Sh50,” said Ngale.
The use of cards will also curb the menace of hiking of fares during peak hours as it will allow a fair pricing system with no issuance of change. The card also has a redeemable points system that provides a loan of up to 10 per cent.
Ngale noted that the use of new technology will create jobs especially for the youths. “This is a Kenya product developed by our own youth, surely why should we look elsewhere.”
This mode of payment aimed at changing the African system of transport, as it is in line with the electronic revolution, seen in the continent. “It is tailored in Africa and for the African people.”