Monday, December 1, 2014

Ban on use of cash in public transport pushed to next year

Politics and policy
Transport secretary Michael Kamau (right) and KCB chief executive Joshua Oigara (centre) help a commuter  sign up for the bank’s Pepea Card during its launch  at the Kencom bus terminal in Nairobi on December 1, 2014. PHOTO | SALATON NJAU
Transport secretary Michael Kamau (right) and KCB chief executive Joshua Oigara (centre) help a commuter sign up for the bank’s Pepea Card during its launch at the Kencom bus terminal in Nairobi on December 1, 2014. PHOTO | SALATON NJAU 
By KIARIE NJOROGE, gkiarie@ke.nationmedia.com
In Summary
  • The migration is expected to be completed with one year, offering relief to commuter and the matatu industry that feared an acute transport service shortage with the withdrawal of non-compliant vehicles. 
  • Transport secretary Michael Kamau said Monday commuters would use both the cashless fare payment and money to settle transport bills in coming months.

Commuters have been spared the ban on use of cash in public transport services as the government opted for gradual implementation of the digital fare drive.
The migration is expected to be completed with one year, offering relief to commuter and the matatu industry that feared an acute transport service shortage with the withdrawal of non-compliant vehicles. 
The National Transport and Safety Authority (NTSA) had set December 1 as the deadline for the switch to cashless fare system, having failed to meet its earlier July 1 deadline.
Transport secretary Michael Kamau said Monday commuters would use both the cashless fare payment and money to settle transport bills in coming months.
He added that the government had opted out of crackdowns and would instead tie the issuance of annual licence and road worthy clearance certificates to the cashless system.
“What we’ve said is that for the matatu operators, when they come to us for service we are going to demand that they be on the cashless system. But for the commuters, let them continue travelling as they have,” said Mr Kamau.
“There’ll be no police or NTSA operation but if a sacco needs a service or if its operations are halted; then among the conditions for the lifting of the ban will be that you be compliant with the system.”
This came as it emerged that commuters and public transport operators were unprepared for the switch to cashless payment of fares.
Star Bus Company, which serves the Westlands and Kangemi route in Nairobi had only 20 of its 300 buses fitted with cashless gadgets.
“Most owners are still waiting to see the success of the system,” said route manager Wilson Mwangi.
Solomon Njoroge of CBET Sacco, which serves Buru Buru and Outering estates, reckon that commuters have been hesitant to use the cashless system.
The system enables commuters to pay their fare automatically by tapping their pre-paid cards on electronic devices. “Someone people don’t have an assured daily income. It becomes very hard for them to commit their money to the card,” said Mr Njoroge.
UmoInner, which serves Umoja estates, expects all its 104 vehicles to be compliant on Tuesday.
“We had a delay with the gadgets but now every vehicle has one and all the staff have been trained,” said sacco manager Christopher Muia.

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