President William Ruto has directed the Ministry of Transport to engage banks and financial institutions to develop a relief plan for matatu owners struggling to service vehicle loans amid the ongoing fuel crisis and rising operating costs.
Ruto said the government would work with lenders to explore temporary support measures for public transport operators facing mounting financial pressure as global fuel prices continue to rise.
Speaking on Friday at State House, Mombasa, the President said concerns were raised over the increasing burden facing matatu owners whose vehicles were acquired through bank financing.
Ruto said many transport operators were at risk of defaulting on loans because of reduced profit margins caused by high fuel prices and rising operating expenses.
“The government of Kenya, through the Ministry of Transport, is going to engage financial institutions so that we can seek some relief for our transport sector as we all face the crisis ahead of us,” Ruto said.
“Many of the good people standing behind me have transport vehicles on loan from financial institutions,” he added.
The President indicated that discussions could include temporary repayment flexibility and other supportive arrangements to cushion operators during the crisis period.
Kenya’s public transport sector relies heavily on asset financing, with many matatus and buses purchased through loans from commercial banks and microfinance institutions.
The government’s intervention comes amid mounting pressure from public transport operators over rising fuel prices and increasing operating costs that have disrupted transport services in several towns.
On May 18, the Matatu Owners Association claimed the sector had already suffered losses exceeding Sh500 million due to nationwide protests linked to high fuel prices.
Association chairman Albert Karakacha said many operators were struggling to service vehicle loans, insurance premiums, Sacco charges and maintenance costs following the latest fuel price increases.
The association warned that operators were prepared to continue industrial action until the government addressed concerns over fuel prices, arguing that continued operations had become unsustainable for both transporters and commuters.
The protests led to transport disruptions in Nairobi and other towns, with some operators withdrawing vehicles from the roads while others increased fares sharply.
Industry players have repeatedly warned that rising fuel costs and reduced earnings are pushing operators into financial distress, with some struggling to meet monthly repayments while maintaining daily operations.
Transport stakeholders have also expressed fears that continued financial pressure could lead to higher fares, reduced services or repossession of vehicles by lenders.
Ruto defended the government’s fuel management measures, arguing that the current global oil crisis would have caused greater economic damage without the government-to-government fuel import arrangement introduced in 2023.
He said the framework had helped stabilise fuel supply and reduced pressure on foreign exchange reserves despite disruptions in the global oil market.
The President also announced additional measures targeting the transport sector, including a review of insurance laws affecting public service vehicle operators and new regulations for digital taxi platforms.
He directed the National Transport and Safety Authority to work with ride-hailing companies and drivers to implement minimum taxi fare regulations aimed at protecting drivers from low earnings.
Ruto further appealed to Kenyans to remain patient and united during the current fuel crisis.
“Leadership requires honesty, not political opportunism,” he said.
“We must confront this challenge in the spirit of unity, resilience and national resolve that has carried Kenya through difficult moments.”
The transport sector remains one of the most sensitive areas of the economy, with fluctuations in fuel prices often triggering fare increases and wider concerns over the cost of living.
