Cashless fare system deadline pushed to December 1

The government has set December 1 as the new deadline for the roll-out of a cashless fare system in Kenya.

The initial deadline was July 1, but the switch suffered hitches as matatu firms decried lack of devices. The Central Bank had also not approved any service provider.

The National Transport and Safety Authority (NTSA), which is the implementing authority, said only three service providers had been approved to operate the system.

“The Central Bank together with the NTSA have so far approved the following to offer cash light fare service, having met all requirements of Legal Notice No 75 of June, 2014; KCB, Co-op Bank of Kenya, Equity Bank,” read an advert by NTSA.

“A person desirous of providing the cash light fare system service shall obtain a letter of no objection from the Central Bank of Kenya,” the advert continues.

The approval is crucial to protect commuters’ deposits while ensuring that the plastic cards are inter-operable.

Cashless fare system was to start on July 1 following a directive by Transport and Infrastructure Cabinet Secretary Michael Kamau compelling all public service vehicles to comply.

However, industry stakeholders felt the need for harmonised cost of the gadgets. “Most providers have no infrastructure to run the system, they are not adequately prepared,” said NTSA Director-General Francis Meja.

He added that the deadline extension now gave more time for operators to acquire infrastructure and fully equip themselves for the switch.
MAIN CHALLENGE
“Approval by Central Bank was the main challenge that held us back because public funds were involved,” Mr Meja was quoted saying in July.
Already, banks and payment processing firms are working with bus companies to issue debit cards that help commuters pay fares.