NAIROBI, Kenya — Nairobi Governor Johnson Sakaja has appealed to banks and SACCOs to consider granting temporary loan amnesty to Kenyans struggling with repayments amid the worsening economic crisis triggered by soaring fuel prices.
The Nairobi governor made the appeal on Tuesday after helping broker a truce between matatu operators and the government, leading to a one-week suspension of the nationwide transport strike that had paralysed movement in several towns and cities.
“I want to appeal, and I know that through the Cabinet Secretaries that we shall reach out to the financial institutions,” Sakaja said.
“We are in extraordinary times. The crisis we are in is global.”
Governor Sakaja, who committed to act as a guarantor for matatu operators during ongoing negotiations with the government, said the financial strain caused by rising fuel prices was affecting all sectors of the economy, not just the transport industry.
He noted that many matatu operators were grappling with mounting debts and fears of repossession by lenders due to difficulties servicing vehicle loans.
“We can talk to them to some level of amnesty for some time, because people are really struggling,” Sakaja said in a direct appeal to financial institutions.
The governor acknowledged that recent increases in fuel levies and operational costs had placed immense pressure on ordinary Kenyans and businesses alike.
He said the government was aware of the burden facing transport operators and pledged to personally engage national leaders to seek a lasting solution to the fuel and levy dispute.
Sakaja painted a grim picture of the economic impact of the strike, saying children had missed school, patients were unable to access hospitals, and farmers were struggling to transport produce to markets.
“This is one of the hardest hits in our economy in recent times,” he said.
The talks, chaired by Interior Cabinet Secretary Kipchumba Murkomen and attended by transport stakeholders, resulted in an agreement to suspend protests for one week to allow further consultations.
The agreement followed failed attempts to calm the crisis through fuel price adjustments announced by the Energy and Petroleum Regulatory Authority.
EPRA reduced diesel prices by Sh10.06 per litre while increasing kerosene prices by Sh38.60, a move the Matatu Owners Association rejected as inadequate.
Transport operators had demanded a diesel reduction of at least Sh46 per litre, arguing that anything less would not cushion them from rising operational costs or help them meet loan obligations.
The nationwide protests and strike disrupted public transport across Nairobi and other major towns, leaving thousands of commuters stranded and triggering violent confrontations in some areas. Authorities confirmed deaths, injuries, destruction of property, and hundreds of arrests linked to the unrest.
