In the Lower Eastern region of Kenya, matatu operators are facing a tough battle against insurance companies over unpaid claims.
Despite sticking to the terms of their policies, these operators accuse firms like INVESCO, AMACO, and Directline of not honoring legitimate accident claims. This leaves them financially vulnerable and unprotected against legal challenges.
With support from the Machakos Matatu Owners Association (MAMOA) and the Federation of Public Transport Sector (FPTS) in Kenya, the operators have turned to Parliament for help. Machakos Town MP Caleb Mule has highlighted the issue, pointing out a sector suffering from neglect by insurers and insufficient regulatory oversight.
Operators argue that, even with timely premium payments, insurance companies not only refuse compensation but also avoid providing legal support, forcing operators into costly court battles. Currently, over 4,000 public service vehicles are caught up in these disputes, causing significant financial and emotional strain.
“These insurance firms are ripping off matatu owners,” says Hon. Mule. “They offer third-party insurance policies for as little as two thousand shillings a year, knowing full well they won’t pay when it really matters.”
Mr. Kushian Muchiri, CEO of the Federation of Public Transport Sector, shares these concerns, criticizing the Insurance Regulatory Authority (IRA) for overlooking the operators’ plight. “Matatu owners are being extorted through bogus claims with no protection from the very regulator meant to oversee the industry,” he states.
The petition calls on the National Assembly Public Petitions Committee to act swiftly, urging insurers to settle all due claims and mandating the IRA to enforce strict conduct codes for the insurance industry. Committee Chairperson Hon. Kavai Kagesi has emphasized the seriousness of the issue, promising to summon both the IRA and the implicated insurers for explanations.
The Committee will conduct investigations and present their findings to the House.
