The transport regulator, NTSA, as well as county authorities in Nairobi, will need to reconsider their approach in regulating digital companies in view of the disagreement between them and SWVL, the shuttle-hailing app firm.
Traditionally, matatu and shuttle operations have been determined by route allocation as well as membership to specific Saccos.
However, this model is unlikely to work effectively in an environment where a commuter can choose which bus – and route - to take through an app.
As such, the old model of regulation will need to be reviewed in the wake of the challenges and opportunities posed by technology and its attendant disruption.
Having said that, however, it is worth pointing out that even digital companies are corporate citizens. As such, they are under obligation to obey the rules and regulations already in place even as they push the boundaries to align regulation with practice.
Thus, where they are required to obtain the requisite licences, it is only proper that they do without delay. And where they are dissatisfied with the legal regime, they have the option of challenging this in court, and if need be, lobby legislators to change the law.
When all is said and done, the positions taken by both the regulator and the company need to be reviewed cognizant of the fact that no one benefits when companies are forced to close down.
With goodwill on both sides, it is possible to find a solution to the current impasse that will be a win-win for the regulators, the transport company and, ultimately, the users of the service who have clearly demonstrated that they are ready for change in the public transport sector.
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