The National Assembly Public Petitions Committee has launched investigations into claims that three major insurance companies are failing to honour legitimate claims by public transport operators.
The Committee, chaired by Vihiga MP Kavai Kagesi, met on Thursday to consider a petition presented by Machakos MP Caleb Mule on behalf of the Machakos Matatu Owners Association (MAMOA).
The petition accuses INVESCO, AMACO, and Directline Insurance of failing to pay valid accident claims, leaving thousands of matatu owners in financial distress.
According to the petition, the affected matatu operators have paid their insurance premiums in full and on time, but the insurance companies continue to default on their obligations.
As a result, many operators are left without compensation after accidents.
The petitioner claims that around 4,000 public service vehicles in Kenya’s Lower Eastern region are currently facing court cases related to road accidents.
However, the insurance companies have allegedly failed to provide legal representation, forcing matatu operators to bear the legal burden themselves.
“This situation is causing serious and irreparable harm,” said MP Caleb Mule. “These insurance firms are ripping off matatu owners. Some are even selling third-party insurance policies for as little as Sh2,000 per year, fully aware that they will not pay in case of an accident.”
Kushian Muchiri, CEO of the Federation of Public Transport Sector, supported the petition, saying, “We are here because the industry’s regulations are being ignored. Matatu owners are being extorted through false claims and there’s no one to protect them.”
The petition calls on Parliament to urgently address pending accident claims involving INVESCO, AMACO, and Directline.
It also urges the Insurance Regulatory Authority (IRA) to put in place clear rules and enforce standards that require all insurance firms in Kenya to settle legitimate claims without delay.
MP Mule emphasized the importance of supporting the public transport sector, which plays a key role in the country’s economy.
“The transport sector is critical for both daily life and revenue generation. It must not continue to be exploited,” he told the committee.
In response, Committee Chairperson Kavai Kagesi assured the petitioners that the matter would be taken seriously.
“This is a very serious issue. We will summon officials from the Insurance Regulatory Authority and the named insurance companies to respond to these concerns,” said Kagesi.
The committee will now begin its investigations and is expected to invite all relevant parties to give their submissions before presenting a final report to the National Assembly.
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