Mbadi dismisses matatu strike, warns against "emotional decisions"

Treasury Cabinet Secretary John Mbadi on Tuesday pushed back against a threatened strike by public service vehicle operators, urging matatu owners and Saccos to pursue dialogue rather than what he characterised as reactive decision-making driven by frustration rather than strategy.

The matatu industry, which serves as the backbone of urban and inter-county transport for millions of Kenyans, has been in dispute with authorities over a range of issues including fuel levies, insurance costs, route licensing fees, and the enforcement of regulations that operators argue are applied inconsistently. Several Sacco umbrella bodies had signalled their intention to ground vehicles in a show of force if their grievances were not addressed.

Mbadi, whose docket covers fiscal policy including the fuel tax framework that operators blame for rising operational costs, said the government was not dismissive of the sector's concerns but cautioned that any action that disrupted commuters would undermine the industry's negotiating position. He described the planned strike as an emotional reaction that would harm ordinary Kenyans most.

Following Mbadi's public remarks, a joint crisis meeting was convened in the afternoon involving the Treasury, the State Department for Transport, and the Energy Ministry alongside representatives from the Kenya National Chamber of Commerce and the matatu owners' associations. The meeting was aimed at producing a short-term framework to address the most pressing cost pressures facing operators.

Kenya's matatu sector employs hundreds of thousands of people directly and indirectly, from drivers and conductors to mechanics and tout coordinators. The industry has historically had a contentious relationship with successive governments over regulation, with periodic strikes causing significant economic disruption, particularly in Nairobi, Mombasa, and Kisumu.

A statement on the outcome of Wednesday's meeting was expected before end of business.