I. Introduction

The matatu mode of public transport has, since its official recognition in 1973, grown in importance. It competes with the public bus transport companies not only within towns, but also in medium- and long-distance passenger transport in Kenya. The short-distance passenger traffic throughout Kenya is dominated by the matatu operator services (Ogonda 1992). A major empirical and conceptual gap in existing studies on the matatu industry in Kenya is that the strong and contending socio-economic interests have been inadequately addressed. Major research themes on the matatu sector in Kenya have been on: origin, growth and legal status (Aduwo 1990; Kapila et al. 1982; Muchira et al. 1994); efficiency and quality of service (Aduwo 1990); employment (Kapila et al. 1982); role in secularism (Shorter and Onyancha 1997); contribution to road traffic injuries (Muyia 2001; Khayesi 1999); conditions of work (Muyia 2001; Khayesi 1997); and risk faced by school girls using matatus (Chege, Rimbui and Olembo 1994). The following questions have been inadequately answered: What are the underlying economic and social forces in the matatu industry? How is the formal policy, regulatory and institutional framework, internalised in the matatu industry? What rules, norms and organisation guide the operation of the matatu industry? This article presents results of a field research on the matatu industry in Kenya.

The purpose of this paper is to examine the struggle for a socio-economic niche and control in the matatu industry in Kenya. The discussion in the chapter seeks to address two main questions:

a) What is the trend in the evolution of stakeholders in the matatu industry in Kenya?

b) How is the matatu industry in Kenya controlled and regulated?

II. Evolution of Stakeholders in the Matatu Industry

The evolution of stakeholders in the matatu industry is examined under three periods: 1950s-1973, 1974-1978, 1979-present. The starting date in each period corresponds to a major turning point in the history of the sector. Of course, further and different periodisation is possible but the three periods have been used to provide a framework to trace the major happenings and actors that have influenced the organisation and regulation of the matatu industry.

III. Matatus as "Pirate" and Illegal Transport Service Operators, 1950s - 1973

Matatus spontaneously originated in Nairobi in the 1950s, used mainly by residents of the African residential zones to move goods as well as people to and from nearby rural areas to their residence in the city (Aduwo 1990). The then existing bus transport system did not cater for these residential areas. The emergence of the matatus filled this transport vacuum. The matatus increased in number, especially with the influx of migrants into Nairobi upon the attainment of independence in 1963. The influx was made possible due to the removal of colonial restriction on African movement into Nairobi. At the start of the matatu operations, a standard fare of thirty cents was charged, irrespective of the distance covered. In fact, the term matatu is derived from the Kikuyu phrase "mang’otore matatu" which means "thirty cents", the then standard charge (Aduwo 1990). Today, the term matatu refers to a major transport enterprise comprising of institutions and persons involved in transport service provision, repair, ownership, regulation, importation, licensing, driver training and a complex network of business relationships and linkages.

The emergence of the matatu mode of transport in Nairobi faced restrictions as they posed a challenge to the monopoly of the Kenya Bus Company in passenger transport. In the 1930s, the need for a public bus service was recognised in Nairobi. To fulfil this need, an agreement was made between the city authorities and a British Transport Company to provide urban transportation services in Nairobi. The result of this agreement was that the Kenya Bus Service Ltd. was given the exclusive franchise of carrying fare-paying passengers in and around the then Municipality of Nairobi (Aduwo 1990). When the matatus emerged, they were seen as illegal competitors by the Kenya Bus Service Ltd. management and the local government authorities. This largely explains the harassment the matatu operators faced from the Kenya Bus Service Ltd. and local authorities, especially in the 1960s and early 1970s. It took lobbying and a presidential intervention for the matatu operators to break into the public transport niche in Nairobi. Following a visit by a group of businessmen from Kiambu to the late President Mzee Jomo Kenyatta, the matatus received official and political backing when a presidential decree was issued in 1973. The decree allowed the matatus to carry fare-carrying passengers without obtaining a trade licence (Macharia 1987).

IV. Expansion and Growth of a Strong Transport Sector, 1974-1988

The matatu industry grew in importance to the extent that the owners formed an association (Matatu Vehicle Owners Association) to control the operations of the sector and also press for their demands. This association, which was abolished in 1988, had national and branch officials. A new entrant (operator) was expected to apply to the association to be allocated the route of operation.

The formal organisation of the matatu industry attracted the attention of both the government and opposition political groups. The opposition political groups saw this association as an important ally to advance political interests. This is why the association, while being disbanded in 1988, was accused by the government of providing a venue for political activism and destabilisation. The association was also accused of having been penetrated by influential rich individuals who were oppressing weak members by, for instance, assigning them to routes that had very few passengers. Following the disbanding of the umbrella matatu association, individual operators were allowed to operate on any route. The interest in getting the support of matatu operators did not end with the disbanding of the association.

Kenya entered an intense period of agitation for political pluralism in the late 1980s. The support of matatu operators was sought in the glamour for the formation of a second political party. During the pro-democracy agitation and demonstrations in 1990, the matatu operators played a catalytic role. For instance, the matatu drivers were among the first to greet each other using a two-finger salute, a risky thing to do at that time. This salute had the symbolic message of indicating that it was time for two or more parties and not just one political party.1  The matatu operators were also instrumental in disseminating political propaganda (through written posters and songs) to the travelling population (Murunga 1999). Whenever a demonstration would be called for by the political a