Matatu sector says losing 40% revenues to demos, calls for an end

Investors in the matatu industry, majority servicing loans, risk the auctioneer’s hummer if demonstrations in Nairobi and other major towns continue, industry lobby group now says.

The Matatu Owners Association on Wednesday said the industry lost 40 per cent of its revenues in Nairobi alone during Tuesday’s demonstrations, which also saw other businesses mainly stalls vandalised.

With an average 25,000 matatus operating in the city every day, raking in an average Sh15,000 per unit mainly 33-seaters and above, it puts the industry’s daily gross earnings in the capital at an average Sh375 million and Sh11.2 billion monthly.

This means the industry lost about Sh150 million during Tuesday’s demos as per MOA’s estimates.

“Some of us we pay loans and did not meet our obligations on Tuesday. We urge the government to bring all stakeholders together including churches, business community and even leaders for national reconciliation to save our country from anarchy,” MOA president Albert Karakacha said.

“We condemn the goons who were hired to destroy businesses in town,” he added.

He noted that the matatu industry is also a significant source of employment, creating more than two million jobs.

These include both direct and indirect jobs spanning from drivers, conductors, mechanics and various other roles related to the operation and maintenance of matatus. 

Countrywide, there are about 60,000 matatus and buses operating on a normal day with the industry making an average Sh900 million daily, translating to about Sh27 billion monthly.

The industry also generates substantial revenue, estimated at over Sh300 billion annually. 

A recent survey by consulting firm–Deloitte found that 70 per cent of Nairobi's population, the country's economic nerve, is dependent on the matatu industry to move around, as the country lacks a well coordinated government transport system.

There are concerns Tuesday’s shooting of a mask vendor in broad daylight by a police officer during a chaotic day of protests in Nairobi’s central business district, could trigger fresh outrage over police brutality.

The incident took place during demonstrations which had been called across major towns—including Mombasa, Kilifi and Nairobi—to protest the killing of teacher and blogger Albert Ojwang’, who died in police custody on June 8, after being arrested in his Homa Bay home the day before.