The Nairobi County Government is shaking up the city’s matatu industry with sweeping new regulations designed to reduce traffic congestion, improve service delivery, and modernize public transport.
The proposed Nairobi City County Permit to Operate Regulations, 2025, introduce limits on the number of vehicles allowed on each route, mandate cashless fare payments, and enforce stricter fare pricing and operational rules.
The county will determine the number of matatus per route annually based on passenger demand, or rely on population growth data when demand figures are unavailable.
All matatu operators, including Sacco groups, must apply for permits valid for five years. While the permit fees remain undisclosed, the regulations require all operators to install electronic payment systems for seamless, cashless fare collection.
Each Sacco must submit a detailed fare schedule to the county, showing prices based on the time of day, passenger type, and whether passengers are seated or standing. Children in school uniforms and infants on laps will continue to travel free within Nairobi.
The rules also strictly regulate where matatus can pick up and drop off passengers. Operators may only use approved public service vehicle terminals, and touting, stopping at petrol stations, or waiting more than 40 minutes at terminals will be banned. Violators risk fines of up to Ksh100,000 and possible license cancellation.
“Any operator shall be allowed to vary the number of vehicles up to a variance of 10 per cent of the authorised route capacity. Any variation beyond 10 per cent must be authorised by the CEC,” the regulations state.
Matatu Operators Resist New Transport Rules
Despite the government’s intentions, the new rules faced strong opposition during a public meeting at Greenpark Terminus. Matatu operators accused City Hall of interfering with their business and criticized the lack of stakeholder consultation.
“We have not been involved at all. Gone are the days when policies were made in boardrooms. We want inclusive participation,” said Wilfred Bosire, Secretary General of the Mass Mobility Operators Association.
City Hall defended the reforms, emphasizing the need to introduce clear standards and fairness in permit issuance.
Officials believe these reforms will bring much-needed order to Nairobi’s chaotic matatu sector, improve commuter experiences, and enhance transparency in route allocation and fare collection.
The Nairobi County Government hopes the changes will reduce traffic jams, curb fare exploitation, and create a more efficient, safe, and reliable public transport system for the city’s millions of daily commuters.
The county government still faces the challenge of implementing and enforcing the new regulations, especially after previous administrations struggled to regulate Nairobi’s chaotic matatu sector in the CBD.
