Improving paratransit service: Lessons from transport management companies in Nairobi, Kenya and their transferability

Abstract

Paratransit is the dominant form of public transport throughout cities of the Global South. Many of these cities recognize the negative characteristics of paratransit services stemming from competition in the market and have attempted to undertake reforms aimed at addressing these negative aspects. Comprehensive replacement of paratransit with bus rapid transit systems is a common reform approach, but the transition from atomized paratransit operators to formalized vehicle operating companies has proven more difficult and time-consuming than anticipated. In addition, high operational costs for BRT systems, especially when compared to paratransit services that impose no direct operational cost to government, are unsustainable burdens on limited budgets. Acknowledging these challenges, the City of Cape Town, South Africa has reevaluated this comprehensive replacement approach and recognized a continued role for paratransit in a hybrid public transport network. There remains the question of alternative approaches for improving paratransit service quality; the case of transport management companies (TMCs) in Nairobi provide an interesting model. The TMC structure improves passenger service quality by employing drivers on a salaried basis, managing operations collectively, and monitoring service delivery while maintaining profitable (subsidy-free) service. Therefore, this model appears to be a viable alternative reform approach for Cape Town and other cities in similar situations. This paper details the TMC structure, benefits for stakeholders, and discusses its potential as an alternative public transport reform path.