Thousands of matatu operators across Kenya’s Lower Eastern region are crying out for justice, accusing major insurance companies of defaulting on claims despite full compliance with policy terms leaving them financially devastated and unprotected in the face of legal battles.
The operators, through the Machakos Matatu Owners Association (MAMOA) alongside the Federation of Public Transport Sector (FPTS) in Kenya, have petitioned Parliament, citing persistent refusal by three insurance firms, INVESCO, AMACO, and Directline to settle valid accident claims. The petition, presented by Machakos Town MP Caleb Mule, paints a grim picture of an industry plagued by insurer neglect and lack of regulatory protection.
According to the petition, many operators have paid premiums in full and on time, yet when accidents occur, the insurers not only fail to compensate but also neglect to provide legal representation forcing operators into costly court cases. Over 4,000 public service vehicles are reportedly embroiled in such cases, suffering financial and emotional strain.
“These insurance firms are ripping off matatu owners” lamented Hon. Mule. “They offer third-party insurance policies for as little as two thousand shillings annually, fully aware they won’t pay when it matters most”.
Mr. Kushian Muchiri, CEO of the Federation of Public Transport Sector, echoed these sentiments, accusing the Insurance Regulatory Authority (IRA) of turning a blind eye. “Matatu owners are being extorted through fictitious claims with no protection from the very regulator meant to oversee the industry,” he said.
The petition urges the National Assembly Public Petitions Committee to intervene swiftly, compel the named insurers to pay all outstanding claims, and direct the IRA to establish and enforce strict codes of conduct for all insurers.
Committee Chairperson Hon. Kavai Kagesi assured the public that the matter would be treated with urgency.”This is a very serious matter that this Committee will give all the due attention,” he said, pledging to summon both the IRA and the accused insurance companies to provide answers.
The Committee will now move forward with its investigations before tabling a report in the House.
