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Kalua says the industry has contributed over Sh2.2 billion to the exchequer in form of direct taxes with over 500,000 motorcycles on Kenyan roads/FILE


Court directs AG and CS Treasury to respond to Boda Boda petition on insurance

The petitioners want the court to restrain Treasury from implementing 3rd party insurance proposals contained in the 2019/20 Budget/FILE

NAIROBI, Kenya, Jun 24 – The High Court has given the Attorney General, Treasury Cabinet Secretary and Motorcycle and Tuk-tuks operators 10 days to respond to the petition filed by Nairobi Governor Mike Sonko and six others challenging the requirement to acquire mandatory insurance cover for their passengers.

Justice Weldon Korir, said that the petition raises serious issues, which must be addressed and responded to by the parties to allow the matter be heard inter parties on Tueday, 25 June.

The Nairobi Governor filed suit alongside Gatundu South Member of Parliament, Moses Kuria, EALA Member of Parliament Simon Mbugua together with politicians Kalembe Ndile, Reuben Ndolo, Stanley Livondo and Kevin Mubadi.

Justice James Makau who heard the petition last week directed them to file and serve the application to Treasury Cabinet Secretary Henry Rotich and the Attorney General, Paul Kihara who they have named as respondents and appear in court today Monday for directions.

The petitioners want the court to restrain the Treasury CS from implementing the proposal in his 2019/20 financial budget arguing that the implementation of the proposal will lead to massive unemployment and huge loses.

They further argue that the said the proposals were not shared with members of the public for comment before they were included in the Budget, indicating that all Boda Boda and Tuk Tuk operators will be required to obtain third party insurance in order to cover their passengers and pedestrians in the event of an accident.

CS Henry Rotich had indicated that the proposal would be effected by amending the provisions of the Insurance Act.

The petitioners however claim that the CS ought to have consulted with the Attorney General before making that proposal in order to receive correct and responsible advice and ensure the proposed amendments do not contradict the constitution.

In an affidavit, Sonko claims that the Boda Boda and Tuk-Tuk operators will now find themselves in position where they are required to pay excessive and obstructive fees in the form of third party insurance without being given any opportunity to debate or discuss the approval.

According to the governor, the amendments and regulations which will introduce third party insurance to Boda Boda and Tuk-Tuk operators were not shared with members of the public for comment before being introduced.

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“The proposal that Boda Boda and Tuk-Tuk operators obtain insurance cover for passengers and pedestrians which was made during the reading of the budget deals with issues of public finance. It follows that there ought to have been sufficient public participation on every issue it intended to introduce,” stated Sonko in an affidavit.

The governor further argues that the constitution obligates Parliament to formulate legislation to manage urban areas and cities and the legislation must provide for the participation of remedies in the governance of urban areas and cities.

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