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PSV operators call for tax cuts and improvement of roads ahead of budget

PSV operators call for tax cuts and improvement of roads ahead of budget
Matatus in a stage. PHOTO/Print

Kenya’s public transport sector stakeholders are calling for urgent reforms to ease the burden on operators and enhance road safety across the country. The industry players urged the government to consider reducing taxes on essential transport operations and invest in improved road infrastructure.

The call comes just when the government is preparing to table the Finance Bill for the 2025/2026 financial year, with a focus on fiscal consolidation and revenue mobilisation through tax reforms rather than tax increases Speaking at a road safety sensitisation forum attended by drivers, matatu owners, and industry regulators, Atomic Shuttle chairman John Mwangi underscored the need for a safer and more sustainable working environment for public transport operators.

“The high taxes and poor road conditions are crippling the sector,” he stated. “We urge the government to look into policies that will not only reduce our operating costs but also protect the lives of road users,” Bishop David Thagana, an investor in the sector, stated. The stakeholders emphasised that constant vehicle breakdowns, often caused by dilapidated road conditions, are contributing significantly to the number of accidents witnessed on Kenyan roads each year. According to the National Transport and Safety Authority (NTSA), the number of fatalities climbed to 4,282 in 2024, up from 3,901 in 2023, with serious injuries also having risen to 10,662 in 2024 compared to 9,501 in 2023.

The players in the sector blamed most of these fatalities on human error, recklessness, and non-compliance with traffic regulations.

They, at the same time, cited infrastructure challenges and lack of support for public transport workers as key to increased road carnages.

“Intoxication is a major contributor to road accidents. There is also the issue of overlapping and a lack of sensitisation, and we hope that moving forward after this forum, accidents will go down significantly,” Vincent Otieno, the base commander in Ruai, told journalists.

The forum’s organisers reiterated their commitment to improving road safety through continuous education and collaboration with government bodies.

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