Effects Of Insecurity On The Profitability Of Matatu Industry In Nairobi County

Abstract

The study sought to examine the effects of insecurity on the profitability of matatu industry in Nairobi County. Specifically, the study sought to determine the effect of violent, non-violent and gender-based violence insecurity on the matatu industry profitability in Nairobi County. The target population of the study was 197 Public Service Vehicle SACCOS registered in Nairobi in 2019. The choice of the target population is informed by the fact that the 197 Public Service Vehicles SACCOS are well regulated hence the ease for identification, sampling and data collection. The study adopted an exploratory and descriptive research design. This was informed by the fact that the study sought to explain in detail on the effects of insecurity in the public transport on the transport sector performance. Structured questionnaires with open-ended question were used. A simple Ordinary Least Square regression model was applied to estimate the effect of violent, non-violent and gender-based violence insecurity on the matatu industry profitability. Upon the actual data collection, responses from 182 Public Service Vehicles SACCOS were received which translated to a response rate of 92.39%. The study found that violent, non – violent and gender – based insecurity negatively affects profitability of matatu industry in Nairobi County in Kenya. From the study findings, non – violent insecurities comprising of theft of passengers’ luggage and drugging have the highest negative effect on profitability. This could be explained by the fact that they are the easiest to be perpetrated and therefore are more likely to be rampant as opposed to violent insecurities which are easily noticeable and require much effort and planning for the perpetrators to commit. The study also concludes that although gender – based insecurities negatively affect profitability of matatu industry in Nairobi County in Kenya, the magnitude of their effect is suppressed. This could be explained by the fact that they are less likely to be reported as opposed to other forms of insecurities. Firstly, the study recommends a multi- agent and a multi-stakeholder approach to tackle insecurity in the matatu industry. Secondly is the need for awareness creation and sensitization to the matatu owners and SACCOS on the need to enhance security in their areas of operations given the negative effect insecurity has on their businesses. Thirdly, Efforts such as employing personal guards at the matatu terminals, installing matatus with security monitoring devices would go a long way in reducing such insecurity incidences in the industry. Fourthly, regulations by the National Transport Authority requiring matatu SACCOS to put up security measures and supervise adherence to these regulations is a welcome policy action. Finally, there is the need for national and county government to form a special security unit to deal with insecurity incidences within Nairobi Central Business District and the Nairobi metropolitan at large.