Matatu operators have approached Parliament, citing widespread failures in the public service vehicle (PSV) insurance system that leave accident victims uncompensated and insurers struggling.
The petitioners told the National Assembly Committee on Public Petitions on Tuesday that the current framework encourages fraud, undercutting, and inefficiency, making it impossible to protect passengers and operators effectively.
Kushian Muchiri, CEO of the Federation of Public Transport Sector (FPTS), asked Parliament to examine key legislation, including the Insurance (Motor Vehicle Third Party Risks) Act, the Insurance Act, the Traffic Act, and the Small Claims Court Act.
He said the way personal injury claims are handled currently exposes both insurers and accident victims to abuse, leaving many without proper compensation.
Muchiri criticised the use of Small Claims Court procedures for personal injury matters, describing them as “procedurally inadequate.”
He explained that insurers are not allowed to question witnesses or verify essential evidence such as medical reports and contributory negligence, which weakens the integrity of claims processing.
He also noted the collapse of several PSV insurance companies over the past twenty years, including Invesco, United, Xplico, Blueshield, and Concord, pointing to fraud, aggressive premium undercutting, and lack of digital claims management as major factors.
Supporting the petition, Tom Gichuhi, Executive Director of the Association of Kenya Insurers (AKI), said fraud and price competition have made PSV insurance financially unviable.
He urged lawmakers to empower the Insurance Regulatory Authority (IRA) to set minimum premium rates and strengthen collaboration with the National Transport and Safety Authority (NTSA) and the National Police Service in verifying claims.
Committee Chairperson Karemba Muchangi noted that unsettled insurance claims are a nationwide concern.
“The Association of Matatu Owners is rightfully before us seeking intervention because there is a need for proper regulation of the sector. The issue of unsettled claims is a national problem that must be addressed,” he said, questioning why operators continue paying premiums without receiving due compensation.
Committee members also called on matatu operators to improve internal discipline and ensure safer practices on the roads.
Janet Sitienei, Turbo MP and Committee Vice Chairperson, attributed many PSV accidents to operator negligence, saying, “It is you, the officials seated here, who can push the various Matatu operators to follow rules and ensure passengers are served safely and responsibly.”
Kangema MP Peter Kihungi emphasized the need for cooperation among the IRA, NTSA, and the Ministry of Transport to tackle the sector’s challenges rather than assigning blame.
The Committee resolved to summon the Insurance Regulatory Authority to present its position on the petition in an upcoming session.