‘Nissan’ matatu imports drop sharply

Matatus at a bus stage in Nyeri. New registration of the “Nissans” has reduced to only 26 in first six months of 2012. Photo/File

What you need to know:

Only 253 vans were registered in 2011 down from 3,564 in 2010, the data from the Registrar of Motor Vehicles shows.

The number of newly registered 14-seater passenger service vans is steadily dropping as the higher capacity bus numbers rise, new statistics show.

Only 253 vans were registered in 2011 down from 3,564 in 2010, the data from the Registrar of Motor Vehicles shows.

In the first six months of 2012, the number was a paltry 26, indicating a shift to larger capacity carriers.

Transport permanent secretary Cyrus Njiru said the government was keen on phasing out matatus although business people continue to import such vehicles for non-public use in businesses.

“There is no confusion over this, we are phasing out matatus and makers of buses should prepare to make more of them,” Dr Njiru told the Kenya Private Sector Alliance (Kepsa) at a meeting in Nairobi Tuesday.

Lobby Matatu Welfare Association, however, says it agreed with the Transport minister last year that businesses would ask the Registrar of Motor Vehicles to allow importation of the matatus for use outside the Central Business District of Nairobi.

The government in 2010 banned importation of 14-seater passenger service vehicles in favour of bigger buses in a move meant to decongest the roads.

But Transport minister Amos Kimunya later said the ban would be partially lifted in favour of rural areas. He has not made a formal step in that direction.

“We are wondering whether the minister was serious or not because we are losing time,” said Mr Dickson Mbugua, the lobby chairperson. The lobby says acquiring a bus requires a deposit 40 per cent of the cost with the financier, which amounts to about Sh1 million.

The cost of a new bus is between Sh3.6 million and Sh4.2 million while the cost of a new ‘matatu’ is about Sh2 million.

“Most individual matatu owners cannot meet these expenses,” he said, adding that saccos which were supposed to pool resources for buying buses are not delivering as matatu owners cash dividends to meet daily needs.

Most 14-seater operators join saccos to get Transport Licensing Board (TLB) licence, not for pooling resources, said Mr Mbugua.

The beneficiaries of the new law include General Motors, CMC Motors, and DT Dobie. The number of buses registered increased by 30 per cent to 1,680 from 1,286 in 2011.

These franchise holders for Isuzu and Nissan provide the bulk of jobs for the assemblers after importing completely knocked-down (CKD) kits from Japan.

PSV operators are hopeful of the government loosening its tough stance on importation of the 14-seaters, the bulk of which are composed of second-hand imports.

Mr Simon Kimutai, the chairman of rival lobby Matatu Owners Association (MOA) maintained banning the importation of the matatus went against a reported agreement with the ministry.

“We had agreed last year that some areas with lower populations be given a window to ship in matatu vehicles,” said Mr Kimutai. There are about 650 registered saccos in the country but most of them are not active.

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