Matatu operators urge government to address issues with insurance firms

Public transport operators have submitted a petition to the National Assembly's Public Petitions Committee, calling for government intervention over the persistent failure of certain insurance companies to settle their claims.

The committee, led by Vihiga MP Kavai Kagesi, held a session on Thursday, April 17, to examine the petition.

The document accuses the Insurance Regulatory Authority (IRA) of neglecting its responsibility to safeguard the interests of matatu operators when it comes to insurance disputes.

Machakos MP Caleb Mule tabled the petition in Parliament, highlighting serious grievances against three specific insurance firms.

These companies are alleged to have declined to process legitimate claims filed by operators in the public transport sector.

The insurance companies named in the petition are also accused of neglecting to offer legal representation in related cases—a failure that has allegedly resulted in expensive court judgments against the public transport operators.

The matatu operators claim that despite fully adhering to all insurance policy conditions—including prompt and complete premium payments—the insurance firms have allegedly failed to meet their end of the bargain.

In their petition, they revealed that over 4,000 public service vehicles in Kenya’s Lower Eastern region are currently entangled in legal disputes linked to road accidents.

Labeling the matter as one causing “significant and irreparable harm,” the petitioner urged the committee to take action and hold both the insurance companies and the regulatory authority accountable.

"Honourable Chair, these insurance firms are ripping off Matatu Owners. Some are charging third insurance policies for as low as two thousand shillings annually, knowing very well that they are not going to pay, in the case of an accident," noted MP Mule.

"Hon Members, these insurance agencies must be made to honour all outstanding and legitimate claims. The public transport sector plays a vital role in the day-to-day functioning of this country, as well as for revenue generation, and as such must not continue to be exploited."

Mule’s remarks received support from Kushian Muchiri, the Chief Executive Officer of the Federation of Public Transport Sector, who criticized insurance firms for disregarding established industry regulations.

"We’ve gathered here today because the rules governing this sector are being flouted, leaving Matatu owners vulnerable to exploitation through fraudulent claims, with no protection in sight," Muchiri stated.

He went on to call for urgent intervention by the committee to help settle pending accident claims and urged the Insurance Regulatory Authority (IRA) to develop and strictly implement clear operational standards for all insurance companies active in Kenya.

The committee is now tasked with examining the petition, summoning relevant stakeholders to present their views, and eventually submitting a detailed report for debate in the House.