Will there be money transfer costs? How will they be distributed?

Why should there seem to be a favoritism on M-pesa or bebapay? I have no problem with us going digital but I think the government needs more consultation on how they are going to get revenues in a digital world. For example, the anticipated revenues may not be realized because the digital system is inherently against increasing costs, so delivery systems and multimedia conferencing will rise and government will have a harder time collecting taxes.

So the banks get 1% of the matatu revenue?

Bullcrap Legislations by this Jubilee Confused 'Leadership'.

1. Police will still be bribed, even shuttles pay protection money to cops through the SACCOs yet the fares are well documented by issuance of receipts in the offices.

2. Tax evation (income tax) will still continue as usual, since, even landlords have not yet complied. This will cause a hike in fares.

3. Adding VAT on my bus fare (which is what KRA is wants) will not go well with me as an overtaxed citizen.

Mayb saccos will come up with prepaid seasonal tickets. Problem is our public transport system is so unreliable and one might need to have a number. Unless of course they come up with a sort of visa card.

That unreliability part should be sorted first...

@dunkang, apart from your second point, I disagree. I doubt govt would want to add VAT for fare. They most likely though will want to get some income tax from the PSV guys which is good for us all. We've been talkin bout widening tax bracket, right?

Actually yes, and not now, since kidu 18 century and in some cases some year BC, in every country it is now the case, governments declare the legal tender, the issue of electronic money is key, especially to cut the interest rate for you (the cost of using money)/corruption and to enhance security which is the key factor in economic growth, very simple really! This could in itself "transport alone" cut the regular banks interest rates given to customers by my guessumptions by something like 1 to 2% and much more if other sectors adopted it.

Quite right. I also remember that the PORK has interests in a major bank, so the 1% is very welcome. .. and going off the tangent here a bit this is probably why we cant have sane regulation of interest rates, inflation and borrowing.
Isnt it illegal to refuse legal tender in the first place? It seems ludicrous to place such massive overheads on an industry where the transactional exchange is 30 or 50 bob. These are laws designed by a rich oaf who has probably never used public transport.
Of course there will be another sourcing fiasco, where fat cats will hijack the sourcing of any of the systems involved. I hope someone sues and the Supreme court forces some more rational thinking into this.

The reasoning here has to do with all the risks involved in handling cash, some of which are direct risks to the economy eg tax evasion. However, instead of government forcing people to use it, they could make it attractive for all stakeholders to consider damping cash transactions by offering incentives. If the incentives are more attractive, and with the private sector given the leeway to innovate around the cash-less systems to make the costs of the systems down, more n more will move to the cashless system by choice. But I the directive requiring govt offices not to accept cash payments is much welcome. A look at how much money is lost by NCC between their cash office at City Hall n Cooper bank will make the switch an urgency.

this will never work pragmatically speaking, our public transport system has alot of variables that beba pay and mpesa cannot address, having said that, cashless transactions are long overdue in +254 but in the transport industry reliability and standardisation need to be achieved take for instance the public transport in london is such that the fares are capped at one pound fifty regardless of what part of london you are going to plus the buses are very reliable and always on time, this applies to all bus companies operating in london, if this cashless thing was to work we need reliability and standardisation without this then govt. should let those who pay cashless pay and those who want to pay cash should be allowed to do so

We are mixing two things here.

First a cashless society which is a dream being that its not been achieved anywhere on this earth. It may also be a good thing.

The second is a gov't that wakes up and decides that on this date, no one will ever use cash again in a matatu.

The second is a sign of never having understood the problem with the first and is not a solution to anything especially any of the problems it pretends it wants to solve.

Just another way for a gov't to tax its citizens and also ensure that friends of gov't win tenders.

Hii ni serekali ya kusema na kutender kweli.

Now all Kenyans must have a digital tv, mpesa, a laptop and God knows whats next.

The work of gov't is to facilitate not to create another unworkable law that is meant to glorify muthamaki as digital. My grandmother doesn't carry her phone from home, does that mean she will never enter a matatu? Does it mean that all parents must buy each of their kids a phone and ensure it has mpesa in it? Is the gov't working in cohorts with banks to create monopolies?

This reminds me so much of Al Capone and the mafia. For you to operate in this area you must pay each bank 1% of your earnings. And its enforced by the gov't. Wow!