Should matatus and boda bodas be service cooperatives or saccos?

In 2003, then-Transport and Communication Minister John Michuki issued the ‘Michuki rules’ to rein them in. 

Legal Notices 161 of 2003, 83 of 2094, 97 of 2004 and 65 of 2005 required owners of public service vehicles (PSVs) to display route details and paint a yellow band on them, install speed governors, fit seat belt, employ crews on a permanent salaried basis and display the driver’s photograph in the cabin. PSV crews were required to wear badges and uniforms (navy blue for drivers, maroon for conductors). Drivers were to re-test biennially.

Since then, boda bodas have become the new pain on two wheels. Trauma wards are filled with riders, their pillion passengers and the unlucky pedestrian who happened to be doing their thing before a rider landed on them. People have complained in vain. But things boiled over early last month, when a woman motorist was indecently roughed up by boda boda riders, which pushed the government to act. And act it did.

Like in the case of matatus, the quick fix is to place every boda boda into a savings and credit cooperative (sacco). But shouldn’t matatus and boda bodas belong to service cooperatives rather than saccos?

Economic interests

The object of a sacco is to organise and promote the welfare and economic interests of members. They are expected to promote thrift among members by affording them an opportunity to accumulate savings and deposits to create a pool of funds, from which loans can be given to them exclusively for provident and productive purposes at fair and reasonable interest rates, thus enabling them to use and control their money for their mutual benefit.

Saccos also support personal growth through introduction of products and services that promote their economic base. They ensure progress of members and society through continuous education programmes on proper use of credit, reduction of poverty, promote human dignity and cooperation.

Primary focus

Thus, the primary focus of a sacco is on saving and giving affordable credit to support members’ socioeconomic development. But for a service cooperative, focus is on providing quality service. Specifically, in the transport sector, the service is to move people or goods from point A to point B. To improve that service should be our primary concern.

The 2018 draft regulations from the State Department of Cooperatives identify the objects of transport cooperatives. They are expected to conduct transport business for and on behalf of the members, including managing the operations of PSVs on behalf of members/owners and PSV crew; and enforce code of conduct among members.

Others are to encourage thrift and credit among members; arrange for the purchase and resale of PSVs for and on behalf of members; take measures to ensure road safety; provide transport services on hire; foster education and training to members, committee members and employees; own and operate motor vehicle garages, parcel delivery services, petrol stations and motor vehicles/bikes spare parts stores; and control and standardise fares and levies charged by the members on passengers and goods.

Against matatus and boda bodas, Kenyans complain about poor services, don’t-care attitude of service providers, non-observance of traffic rules and lack of respect for customers. We can deal with these service-related complaints through transport service cooperatives but the ministry must lead the way.

Transport cooperatives will focus on delivery of quality service, saving members through bulk purchase of fuel and repair kits, enforcing minimum service standards and negotiating reduced insurance costs due to improved safety. They could then add ancillary services like saccos and health facilities for members. Quality service should be their key concern, which they can easily support through regular refresher training to members. They will reward members for good behaviour and sanction those who run rogue.

Prof Nyamongo, an anthropologist, Fulbright Scholar and 2022 Pelto International Award recipient, is a deputy vice-chancellor at The Cooperative University of Kenya. [email protected]. @Prof_IKNyamongo