Kenya Fintech develops digital management solutions for public transport

Kenya's public transport system is inefficiently managed and prone to corruption as it relies on cash payments and there is no payment control. Bus drivers collect the proceeds from ticket sales directly and usually pay a fixed fee to the bus company. The lack of monitoring gives drivers the opportunity, for example, to charge higher fares when it rains or buses are full, or to avoid less lucrative routes. As a result, some stops are not served at all, while others are served by more buses than needed. With the introduction of a digital system, bus cooperatives (SACCOs) can better control ticket sales and movements on public transport. DIL currently has contracts with 40 SACCOs operating a total of 5,000 buses and plans to further expand its business in this sector.

Data Integrated Limited (DIL), a women-owned Kenyan Fintech company, offers an affordable, holistic payment solution complete with customer management system for SMEs. A combination of point-of-sale device, proper transaction recording and real-time payment tracking enables improved monitoring and transparency of payment transactions. The MobiTill solution has already been successfully implemented at wholesalers, retailers, bars and restaurants. The expansion of the system for public transport with video surveillance system and card payment enables SACCOs for the first time to monitor passenger numbers, number of tickets sold as well as locations of buses. This makes it possible to ensure access to certain stops, optimise bus routes and monitor payment flows, including the number of tickets sold. Between 2019 and 2020, the company's expansion investment was co-financed with 100,000 euros, with 100,000 euros raised by the company.

DIL's MobiTill payment solution, combined with corresponding tracking systems, has helped SACCOs and bus operators to significantly improve their efficiency and profitability. They have now been able to optimise bus routes and ensure that all bus drivers make all stops. Passengers benefit from a more reliable transport system with more price transparency, less corruption and predictability on bus routes. SACCOs that have adopted DIL's solution have increased their revenues by up to 40 percent. In the long run, DIL's innovation will also contribute to the formalisation of employment, as more bus drivers will now have official employment contracts.