Isn't it gov job to formalize the informal sector. I think Matatu sector is long overdue for formalization..it will benefit the matatus industry..it will benefit the gov. When these cashless system starting working...banks will be able to see matatu industry cashflow firsthand..and matatu owners can leverage that..to get financing for more fleet.
This 1963 thing is being overblown. Gov basically has allowed whoever has been ratified by CBK to offer their cashless systems using contact less cards. Equity have their own. KCB has their own.Matatu industry has spewn their own 1963 thing. Somebody can wake up today and start their own card system.
Definitely the touts and the police will want this to fail..the opaqueness allows them room to engage in thuggery and graft..but Matatu owners..will want this to succeed.
nobody will ever beat the ingenious matatu guys to enrich himself using formal structures ...most regulations on matatus will fall flat as the kids hanging onto the matatus and collecting fare have their interests at hand first-pesa mfukoni .... given the matatus pay upfront taxes per seat and fuel levy among others the tax thing doesn't cut
govt should work to eliminate leakages in govt and leave juakali to organically grow ...regulations like digital migration and this cashless nonsense will never make sense if they are forced ...why can't people when promoting things here look at organic growth of MPesa, Equity ...nobody has been forced to use MPesa...Equity may have benefitted from push to have people being paid salries from banks