[kictanet] Does cashless matatu system have a regulatory framework?

Tue Nov 11 14:20:05 EAT 2014

True that Adam,

Monopolies are not necessarily bad since they can ensure a consolidated market to justify investments.  HOWEVER "Private monopolies" rather than "Public monopolies" is a different ball game altogether.  From my limited travels into the developed North, most (the bulk) of their transport system is under the Public Metropolitan/County government - with room for private sector intervention and innovations.

In Kenya we seem to have got it upside down.  Private sector single handedly runs our public transport system - and you can see where this landed us. I miss the days when I was just 10years old and was allowed to use the Public transport aka Kenya Bus Service in 1980s to go alone to public primary school (now @MbuguaNjihia has confirmed am ancient :-)

Indeed I am quite suprised by the loud silence from the Nairobi County government.  Perhaps they are also lost in terms of how, where, when and if they could get involved in this cashless payment system. The big picture (regulatory/market structure) seems to be in limited circulation.

walu.

--------------------------------------------
On Tue, 11/11/14, Adam Nelson via kictanet <kictanet at lists.kictanet.or.ke> wrote:

 Subject: Re: [kictanet] Does cashless matatu system have a regulatory    framework?
 To: jwalu at yahoo.com
 Date: Tuesday, November 11, 2014, 1:00 PM

 It's
 not unreasonable to have a single, mandated card for this
 purpose.  New York's MetroCard is a great example (as
 is the Oyster Card).  Virtually every city I've been to
 has one and only one card for mass transportation.
 https://en.wikipedia.org/wiki/MetroCard_(New_York_City)

 As with
 most things, NYC Transit outsources most of the underlying
 infrastructure to a private company:
 https://en.wikipedia.org/wiki/Cubic_Transportation_Systems

 As long
 as the margins are well defined, there is little in-house
 fraud, and the system generally works, the lack of
 competition isn't such a big deal.  The most important
 thing is that the numbers are published and audited
 regularly and that the underlying vendor can be replaced in
 the future (i.e. Nairobi County maintains intellectual
 property over key assets so there's no vendor lock-in
 beyond the contract period).  
 -Adam
 --Kili - Cloud for
 Africa: kili.io
 Musings: twitter.com/varudMore Musings: varud.comAbout Adam: www.linkedin.com/in/adamcnelson

 On
 Tue, Nov 11, 2014 at 12:41 PM, Mwendwa Kivuva via kictanet
 <kictanet at lists.kictanet.or.ke>
 wrote:
 Thanks Walu. You certainly ask
 valid questions. What comes to mind is consumer protection,
 and ensuring data collected about consumers is not used in
 ways that the consumer does not ascent to. I'm assuming
 we will read the terms of service. 
 I don't expect any player in the
 industry to be a monopoly, and certaily my1963 card wil
 operate alongside BebaPay and AbiriaCard. What I would also
 like to see is the ability to pay with our NFC enabled debit
 and credit cards. Consumers should have a
 choice.
 Cofek's
 appeal is mostly based on Article 10 of the constitution
 where government is expected to involve all stakeholders
 holders (yes multistakeholderism is here to stay) in
 decision making. If there was a stakeholders forum, many of
 these questions would have been asked there.
 Well, the cashles system has worked
 before in Kenya hitherto with mixed reactions from the
 commuters. I support it bearing in mind the many times
 I've forgotten my change. As agents of changes in
 society, we should support the initiative, and let it
 mature. We can learn from other cities, especially Transport
 for London which has a very successful Oyster Card.
 Regards

 On
 Tuesday, 11 November 2014, Barrack Otieno via kictanet
 <kictanet at lists.kictanet.or.ke> wrote:
 Hi Walu,

 We are in interesting times, what happens to the squad
 fellows? They

 normally get a tenth of the fare for their touting. I wonder
 whether a

 feasibility study was done. The Matatu culture is too
 complicated ,

 this system would work with a more organized Nyayo Bus or
 KBS kind of

 system.

 My 2 cents

 On 11/11/14, Walubengo J via kictanet <kictanet at lists.kictanet.or.ke> wrote:

 > The President launched the cashless matatu payment
 system in style last

 > week.

 >

 > Boarding a matatu from State House to the City Centre,
 the President used

 > the payment card “My1963” to pay his fare as the
 smiling Safaricom CEO, Bob

 > Collymore, the Matatu Owners association Chairman,
 Simon Kimutai and the

 > Cabinet Secretary for Transport and Infrastructure, Eng
 Michael Kamau all

 > watched.

 >

 > Read more @

 > http://www.nation.co.ke/oped/blogs/dot9/walubengo/-/2274560/2518070/-/10vedrez/-/index.html

 >

 > ---------------------------

 > Additionally, you can read a bare knuckle view from
 Cofek

 > ** 7 reasons why Cofek will fight to stop the #My1963
 PSV's cashless payment

 > fraud

 >

 > The National Transport Safety Authority (NTSA) plan to
 go cashless on fare

 > payments effective December 1, 2014 though welcome
 cannot escape public

 > scrutiny.

 >

 > Clearly, majority commuters are not ready thanks to the
 very poor and less

 > than transparent handling of the cashless fare payments
 for Public Service

 > Vehicles (PSV’s).

 >

 > If digital migration switch-off of analogue TV signal
 could go to the

 > Supreme Court, then the architects behind the so-called
 #My1963 fraud must

 > not celebrate just yet. Why?

 >

 > READ more @

 > http://www.cofek.co.ke/index.php/14-news/872-7-reasons-why-cofek-will-fight-to-stop-the-my1963-psv-s-cashless-payment-fraud

 > --------

 > walu.

 >

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