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Regulation in the Transport Industry: A Case of Matatu Sector in Kenya

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dc.contributor.author Macharia, Carol G.
dc.date.accessioned 2018-01-25T07:44:13Z
dc.date.available 2018-01-25T07:44:13Z
dc.date.issued 2017
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3539
dc.description A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfilment of the Requirement for Masters in Business Administration (MBA) en_US
dc.description.abstract The general objective of this study was to examine the importance of regulation of the matatu industry for government policy makers, matatu owners, and operators in the transport sector. Specifically the study sought to determine the factors that affect regulation of the matatu transport industry, the benefits that come with regulation, the challenges affecting regulation and the milestones that have been gained in regulation of the matatu transport industry. This study reviewed literature on the regulatory and economic sphere of influence in the matatu means of transport, the impact of the labour law and labour related regulations on the matatu industry, the stakeholders in the matatu industry and factors affecting regulation of the sector and considerations for integration of matatus into the road transport regulation and economic systems. This study used descriptive research design. The target population of the study consists of matatu saccos which encompasses matatu operators and owners. A list of the saccos and sample routes was obtained from the Matatu Owners Association. The sampling technique for this study was stratified random sampling technique. Questionnaires were used to collect data from the selected respondents. Data collected was analyzed using descriptive statistics. Descriptive statistical analysis includes methods for organizing and summarizing data such as tables and graphs to organize data, and descriptive values such as the average score was used to summarize data. Descriptive statistical analysis was used to make valid conclusions from the data. This describes the large group of the population from the information taken from a part of the group. For this study, data analysis was done using the tool Statistical Package for Social Sciences (SPSS) computer software and Microsoft excels for tables and graphical presentation. The findings on the factors affecting regulation in the transport industry revealed that the collection of fares covers the maintenance and operating cost. It also established that employment contracts are issued to the matatu operators and there is a record and identification of the matatu operators. Further, the findings revealed that there is anti-social activities and cartels around matatu termini. Finally it established that matatu operators prefer daily wage instead of monthly wage. The findings on the second objective which was to establish the benefits that come with regulation of the matatu transport industry, revealed that matatu operators have NHIF cards, it also revealed that matatu operators take annual leave. However the findings revealed that not all matatu operators are registered with a sacco or that the matatu operators save regularly with their sacco. Further the respondents did not take a firm stand on the statement that matatu operators have NSSF cards. The findings on the third objective which was to identify the challenges affecting regulation of the matatu transport industry revealed that the matatu sector has full support from the ministry of transport. It also established that there are politicians as well as police officers who own matatus. However, that the majority of the matatu operators support phasing out of the 14 seater matatus. The findings of the forth objective of the study, which was to establish the milestones that have been gained in regulation of the matatu transport industry, revealed that matatus are fitted with speed governors and seat belts. Also realised is that matatu accidents have reduced significantly over the past 10 years and that saccos take responsibility for accidents on their routes and have ensured that matatu operators are familiar with their Code of Conduct. In addition, the findings determined that majority of the matatu operators have comprehensive insurance cover through their saccos. Finally, the findings established that the sector supports that cashless payment system will indeed improve efficiency in operations within the sector. The study concluded that casual or temporary forms of employment does to not enable the workers to enjoy the fundamental rights at work. Further, the fact that traffic police continue to take bribes to overlook traffic offences and that they own some of the matatus, continues to pose challenges in effecting regulation in the matatu transport sector. The conclusions also established that the matatu industry today has a bigger social responsibility for safer road discipline to assuage road carnage. Finally, the cashless payment system should be operationalized to ensure effective and efficient collection of fares to cover maintenance and operating cost and that matatu operators are required to be members of a sacco to ensure adherence to the various laws that affect the sector. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Regulation en_US
dc.subject Transport Industry en_US
dc.subject Matatu Sector in Kenya en_US
dc.title Regulation in the Transport Industry: A Case of Matatu Sector in Kenya en_US
dc.type Thesis en_US


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