Kenya’s public transport sector breathed a sigh of relief on Friday after matatu operators officially called off a nationwide strike that had threatened to paralyse transport services across the country from May 26.
The decision followed high-level talks between President William Ruto and leaders from the public transport sector at State House in Mombasa, where the government announced measures aimed at easing pressure on operators and stabilising the transport industry.
The announcement was made by Federation of Public Transport Sector chair Edwin Mukabana, who confirmed that matatu investors, drivers and conductors had agreed to resume normal operations immediately after consultations with the Head of State. The move came as a major relief to millions of commuters who had feared severe transport disruptions in Nairobi and other major towns next week.
The planned strike had emerged from growing frustrations among PSV operators over the high cost of fuel, rising insurance expenses, expensive vehicle financing and broader economic pressures affecting the transport sector. Operators argued that the increasing operational burden was threatening the survival of many matatu businesses and making it difficult to maintain affordable fares for ordinary Kenyans.
Speaking after the overnight meeting, President Ruto defended the government’s fuel management policies while unveiling fresh interventions meant to cushion transport operators and consumers from rising fuel prices. Among the key announcements was a Ksh10 reduction in diesel prices for the June–July fuel pricing cycle, a move expected to lower pump prices in Nairobi to approximately Ksh222.86 per litre once officially gazetted.
“I have directed that in the next pricing cycle (June–July), we are going to further reduce the price of diesel by a further Ksh10 to provide additional relief to consumers,” President Ruto said.
The diesel price reduction is expected to significantly impact Kenya’s transport sector, where most public service vehicles and commercial transport operations rely heavily on diesel fuel. Industry stakeholders have for months complained that the high cost of fuel has eroded profits and forced operators to either increase fares or absorb losses.
During the discussions, the president also defended the government-to-government fuel import arrangement, commonly known as the G-to-G deal, which the government introduced to stabilise fuel supply and reduce pressure on Kenya’s foreign exchange reserves.
“The G-G arrangement has guaranteed supply even when we have had disruptions and has made it possible for us to pay in terms that do not put pressure on our dollar reserves,” Ruto stated.
Beyond fuel prices, the president directed the Ministry of Transport to begin consultations with banks in a bid to create more affordable financing options for matatu owners. According to operators, many PSV investors are struggling with expensive loan repayment plans amid shrinking profits and increasing maintenance costs.
Ruto also instructed the Insurance Regulatory Authority to address concerns raised by operators regarding insurance claims and compensation processes. PSV operators have repeatedly complained that despite paying hefty insurance premiums, many are still forced to shoulder huge accident-related expenses, including medical bills, repairs and legal costs.
The president further ordered a review of the Insurance Act and the Auctioneers Act within the next three months to address loopholes that operators claim have allowed unfair practices to persist in the industry.
According to Ruto, many matatu owners continue to suffer financial losses because insurance companies allegedly delay or fail to fully compensate accident claims, leaving operators vulnerable to debt recovery actions and vehicle seizures by auctioneers.
“The reforms are aimed at strengthening consumer protection and ensuring fairness in how insurance claims and vehicle recoveries are handled,” the president said.
The meeting also addressed concerns within Kenya’s digital taxi sector. President Ruto directed the National Transport and Safety Authority (NTSA) to regulate digital taxi platforms and develop mechanisms for minimum fares, a move expected to protect drivers from exploitation and unstable pricing models.
While defending the government’s tax and revenue collection policies, the president insisted that Kenya must continue balancing economic relief with long-term fiscal stability.
“Every nation facing this crisis is being forced to make sacrifices, Kenya too is making sacrifices, but they must be fair and sustainable,” Ruto said.
He also defended continued revenue collection measures despite public complaints over the high cost of living and increasing taxation.
“If we stop collecting these revenues entirely, then what public services shall we stop funding? Do we go back to stalled road projects, stop fertilizer subsidy or cut the security budget? Leadership requires us to make responsible decisions not only for today but for the long-term stability of our economy,” the president stated.
The cancellation of the strike is expected to restore calm within the transport sector as operators wait to see whether the promises made during the State House meeting will translate into practical reforms and economic relief.
For now, matatus will remain on the roads after operators suspended the planned nationwide strike, giving commuters and businesses across Kenya temporary relief as negotiations between the government and the transport sector continue.