Nairobi Governor Johnson Sakaja has doubled down on his appeal to banks to halt matatu repossessions for 90 days, in a bid to give struggling transport operators a reprieve as the transport industry continues to grapple with rising fuel prices.<\/p>\n
His call came on Monday, May 25, at a meeting convened by Cabinet Secretary for Roads and Transport Davis Chirchir, which brought together key players from the financial sector and transport industry.<\/p>\n
\u201cI am appealing to players in the banking sector to support the transport sector by granting a temporary 90-day moratorium on repossession and recovery of assets to help operators continue their work,\u201d said Sakaja.<\/p>\n
The governor warned that aggressive asset recovery by lenders was pushing many operators deeper into financial distress, even as transport demand remains high in cities where thousands of Kenyans depend on matatus to commute daily for work and business.<\/p>\n
\u201cThe sector has experienced aggressive recovery of assets during these difficult times,\u201d he said.<\/p>\n
Governor Sakaja made a similar appeal on May 19, calling on SACCOs to also extend a tax amnesty to matatu operators, who are struggling to keep up with loan repayments.<\/p>\n
In Kenya, the matatu sector is largely driven by SACCOs, which manage routes, schedules, and daily liquidity, while banks finance vehicle purchases; both institutions play a central role in regulating the paratransit industry.<\/p>\n
His latest appeal follows talks held between government officials and matatu operators that helped avert a nationwide transport disruption after operators threatened a strike over several unresolved concerns affecting the sector and daily business operations.<\/p>\n
He argued that the crisis facing matatu operators was no longer confined to the transport sector, saying many businesses and ordinary Kenyans were experiencing similar financial strain due to the rising cost of running day-to-day operations.<\/p>\n
The talks, which led to a week-long suspension of the strike and an eventual halt after the matatu sector leaders met with President William Ruto on May 22, led to a further decrease in diesel prices by Ksh10.<\/p>\n
Sakaja, who also serves as the unofficial guarantor of the matatu sector in Nairobi County, promised the sector officials that they will never be excluded from high-level talks involving the government.<\/p>\n
As far as fuel price hikes is concerned, the government reiterates that the fuel crisis in the country is attributed to the months-long war in the Middle East that led to the closure of the Staight of Hormuz, which is responsible for over 20 per cent of the global oil passage, which Kenya heavily relies on from its exporters, a claim that has been disproved by most Kenyans and opposition alike.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nairobi Governor Johnson Sakaja has doubled down on his appeal to banks to halt matatu repossessions for 90 days, in a bid to give struggling transport operators a reprieve as the transport industry continues to grapple with rising fuel prices. His call came on Monday, May 25, at a meeting convened by Cabinet Secretary for […]<\/p>\n","protected":false},"author":84,"featured_media":161382,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,12],"tags":[],"class_list":["post-161383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-policy"],"yoast_head":"\n