President William Ruto addresses media at State House, Mombasa, where
he announced a review of the Insurance Act for matatu operators affected by the
current fuel crisis on May 22, 2026/ JOHN CHESOLIPresident William Ruto has ordered an immediate review of the Insurance Act and related transport laws following mounting complaints from matatu operators over delayed or disputed insurance compensation claims.
Ruto said the government would undertake reforms aimed at creating a fairer and more responsive insurance framework for public transport operators, many of whom have accused insurers of failing to honour claims despite regular premium payments.
Speaking on Friday at State House Mombasa, Ruto announced a raft of measures targeting challenges facing the public transport industry amid rising fuel prices and economic pressure.
The President said the Ministry of Transport would work with the Insurance Regulatory Authority and other stakeholders to address long-standing concerns affecting public service vehicle operators.
“There is a big issue about transport operators. Despite having insurance covers for their vehicles, passengers end up paying bills when accidents occur,” Ruto said.
“Insurance companies must understand that an insurance cover has to mean something when it is paid for by our transporters."
The President directed that a review of both the Insurance Act and the relevant transport laws be completed within the next three months.
He said the reforms are expected to establish a more responsive and accountable framework for players within the transport sector while protecting operators and passengers from exploitation.
The directive comes amid growing complaints from matatu owners and operators over rising operational costs, prolonged court battles involving insurance claims, and compensation disputes following road accidents.
Transport operators have previously accused some insurers of frustrating compensation processes through delayed settlements, legal technicalities and disputed liability claims, leaving vehicle owners and passengers exposed to heavy financial losses.
Ruto also announced that the National Transport and Safety Authority would engage digital taxi operators and transport network companies to implement regulations on minimum taxi fares.
He said the move is aimed at resolving disputes within the ride-hailing sector, where drivers have complained of low earnings and exploitative pricing structures.
“Some of the people working in that space spend up to 16 hours daily just to sustain themselves,” Ruto said.
“There is need for urgent regulations that have already been developed and the ministry must now work with stakeholders to implement them.”
The President further directed NTSA to adopt a more accommodative approach towards matatu culture, including artwork and graffiti displayed on public service vehicles, provided safety standards are maintained.
“The industry is telling me they have been asked to remove artwork from their vehicles, and I am asking myself why,” he said.
Ruto urged Kenyans to remain calm amid the current fuel crisis, warning politicians against exploiting the situation for political gain.
“While every citizen has a right to express concerns, collectively we must reject hooliganism and violence that destroy lives, property and livelihoods,” he said.
He maintained that the government would continue engaging stakeholders across the transport sector to develop sustainable solutions that protect jobs and support economic activity.
