Matatu Industry Faces Financial Collapse After Losing Sh150M Daily in Nairobi Protests

Kenya’s vital public transport sector warns of industry-wide shutdown as violent demonstrations over police brutality cripple operations

Kenya’s matatu industry is teetering on the brink of financial collapse after losing an estimated Sh150 million in a single day during Tuesday’s violent protests in Nairobi, industry leaders warned on Thursday.

The massive losses, which represent nearly half of the sector’s daily earnings in the capital, have exposed the fragility of Kenya’s primary public transport system and raised fears of widespread job losses and loan defaults among thousands of operators.

According to the Matatu Owners Association (MOA), approximately 25,000 matatus operate daily in Nairobi, each earning an average of Sh15,000 from 33-seater and larger vehicles. This puts the industry’s daily revenue at around Sh375 million in the city alone, translating to Sh11.2 billion monthly.

The disruptions saw matatus grounded and businesses vandalised across key parts of the capital, with an estimated Sh150 million in losses recorded in a single day, the association reported.

MOA President Albert Karakacha painted a grim picture of the sector’s predicament, noting that most operators depend on daily earnings to service vehicle loans and meet basic obligations.

“Some of us paid loans and did not meet our obligations on Tuesday,” Karakacha said. “We urge the government to bring all stakeholders together, including churches, the business community and even leaders for national reconciliation to save our country from anarchy.”

The crisis extends far beyond Nairobi’s borders. Countrywide, approximately 60,000 matatus and buses operate daily, earning an estimated Sh900 million.

This translates to monthly industry revenue of about Sh27 billion and an annual figure exceeding Sh300 billion.

According to Kenya National Bureau of Statistics (KNBS), the matatu industry generates over KES250 billion ($2 billion) in revenue with about 70 per cent of Kenyans relying on matatus, highlighting the sector’s critical role in the national economy.

The industry serves as one of Kenya’s largest employers, creating over two million direct and indirect jobs including drivers, conductors, mechanics, and fuel station workers who depend on the smooth functioning of the public transport network.

The protests first erupted on Monday, following the death of teacher and blogger Albert Ojwang, who died while in police custody from what authorities initially claimed were “head injuries” after “hitting his head against the cell wall.”

However, an autopsy conducted by independent pathologist Bernard Midia revealed wounds including head injury, neck compression and soft tissue damage that pointed to assault as the cause of death.

President William Ruto condemned Ojwang’s death as “heartbreaking and unacceptable,” while the EU, U.S., and U.K. have all called for a transparent investigation.

The demonstrations, which spread to Mombasa and Kilifi, have reignited concerns about police brutality in Kenya.

Tensions escalated further after a police officer shot a street vendor in broad daylight during Tuesday’s Nairobi demonstrations, sparking fears of additional unrest.

The protests have laid bare the vulnerability of Kenya’s transport ecosystem. In 2025, over 80% of Kenyans rely on these privately owned minibuses for commuting, yet the country still lacks a well-organized government public transport system.

A recent Deloitte survey found that 70 percent of Nairobi’s population depends on the matatu industry for daily transport, making any disruption to services economically devastating.

The association condemned the violence that accompanied the protests, with Karakacha specifically criticizing “the goons who were hired to destroy businesses in town.”

Industry leaders are now urging authorities to address growing insecurity and bring stakeholders together for a peaceful resolution to the ongoing unrest.

The rising tension, vandalism, and service interruptions threaten to expose thousands of investors to financial ruin, particularly those who have taken loans to purchase vehicles and depend on consistent daily operations to meet their obligations.

The matatu sector’s crisis underscores the broader economic implications of civil unrest in Kenya, where informal and semi-formal businesses form the backbone of urban transportation and employment.

As the country grapples with questions of police accountability and justice, the survival of one of its most vital industries hangs in the balance, with millions of commuters and workers potentially affected by any prolonged disruption to services.

The government faces mounting pressure to not only address the underlying issues that sparked the protests but also to find ways to protect the economic infrastructure that millions of Kenyans depend on for their daily livelihoods.