Thousands of matatu operators from Kenya’s Lower Eastern region are raising alarm over persistent non-payment of insurance claims by major insurance companies, despite fulfilling all policy requirements. The operators say they are financially devastated and left exposed to legal vulnerabilities due to insurer inaction.
The operators, under the umbrella of the Machakos Matatu Owners Association (MAMOA) and the Federation of Public Transport Sector (FPTS), have formally petitioned Parliament. They are accusing three insurance firms INVESCO, AMACO, and Directline of continuously failing to honour valid accident claims. The petition paints a dire picture of the challenges faced by public service vehicle (PSV) owners in an industry marred by insurer neglect and insufficient regulatory oversight.
According to details outlined in the petition, operators claim to have paid insurance premiums in full and on time. However, when accidents occur, they report being met with refusal or prolonged delays in compensation. Many also allege that the insurers fail to offer legal representation in court, despite this being part of the policy terms, leaving the vehicle owners to incur high legal fees and suffer reputational damage.
It is estimated that over 4,000 public service vehicles across the region are entangled in unresolved insurance-related court cases. The result has been immense financial losses for matatu operators, many of whom rely solely on their vehicles for daily income.
One of the main concerns raised is that the insurance companies in question continue to market third-party insurance policies at very low premiums, sometimes as little as two thousand shillings annually. Despite appearing affordable, the petitioners argue that these policies are deceptive, as the insurers are allegedly well aware that they will not honour claims when accidents occur. This practice, they say, amounts to exploitation.
The FPTS leadership has further criticized the Insurance Regulatory Authority (IRA) for what they term as inaction and failure to protect policyholders. They allege that the regulator has allowed insurance firms to get away with fictitious and delayed claim processes, effectively denying matatu owners justice and protection.
The petition calls on Parliament’s National Assembly Public Petitions Committee to intervene urgently. The key demands include compelling the named insurance companies to immediately settle all pending claims and directing the IRA to establish and enforce strict professional conduct standards for all insurance providers. The matatu operators insist that without such action, the industry risks collapse, to the detriment of thousands of livelihoods and the broader public transport sector.
In response, the Chairperson of the Committee assured the public that the issue will be prioritized and investigated thoroughly. The Committee is set to summon representatives from the IRA as well as officials from the accused insurance companies to answer to the allegations.
The next step involves the Committee conducting investigations and public hearings, after which a formal report will be tabled in Parliament. Matatu owners across the region await this process with high expectations, hopeful that their grievances will be addressed and that justice will finally be served.
