From Transcom to Harambee House: Inside the tense talks that ended fuel strike

After two days of chaos that left thousands stranded and forced many Kenyans to walk to work, the nationwide matatu strike was finally called off Tuesday afternoon following a dramatic night of negotiations between the government and transport operators.

What began as a hardline demand by transport operators for a Ksh.46 cut in diesel prices turned into a tense showdown that stretched from Transcom House to Harambee House and even State House, with tempers flaring in meetings, and government reluctantly digging deeper into the fuel stabilization kitty to secure a fragile truce.

It was a night of long knives on Monday at Transcom House. For more than five hours, government officials and transport sector leaders remained locked in a bruising standoff that would ultimately determine whether the country’s transport system would grind to a halt for a second straight day.

The meeting, which began shortly after 4pm on Monday, brought together top government officials, including Energy and Petroleum Cabinet Secretary Opiyo Wandayi, Roads and Transport CS Davis Chirchir, Treasury CS John Mbadi, together with leaders from the transport sector.

But from the very beginning, both sides dug in. The transport operators insisted they would only call off the strike if the government reduced diesel prices by Ksh.46.

“And what we are urging the government is that they have a lot of pockets where they can find this money and fund this Ksh.46 we are looking for,” stated Albert Karakacha, President, Matatu Owners Association.

The three Cabinet Secretaries, however, maintained that the most they could immediately afford was a Ksh.10 reduction. That deadlock would drag the meeting late into the night.

Sources familiar with the negotiations say the atmosphere inside the boardroom grew increasingly tense, with ministers repeatedly retreating into private consultations.

Then, after hours of closed-door talks, a breakthrough appeared to have finally been reached when media was allowed into the deliberation room for a briefing. But it is at that very moment that the negotiations dramatically fell apart.

“This common understanding has been arrived at unanimously,” stated CS Wandayi.

“We did not agree on anything!” Retorted Kennedy Kaunda, CEO, East Africa Tour Guides and Drivers Association.

The collapse of the talks effectively confirmed that the strike would spill into a second day. Thousands of Kenyans had been forced to walk to work, businesses suffered disruptions, several people died during protests linked to the unrest, while hundreds more were arrested.

But even after the dramatic breakdown at Transcom House, negotiations did not stop. Sources say informal meetings continued late into the night between different factions as the government raced to prevent a deeper crisis.

Then, by Tuesday morning at around 11:30am, there was a fresh round of talks involving Interior Cabinet Secretary Kipchumba Murkomen and CS Wandayi, Nairobi Governor Johnson Sakaja, and leaders from the transport sector. It is during that meeting that a deal was finally struck.

“The strike has been suspended,” stated Kennedy Kaunda, CEO, East Africa Tour Guides and Drivers Association.

The government agreed to lower diesel prices by Ksh.10, a move that will cost approximately Ksh.2.7 billion.

To finance the intervention, the state dipped into the remaining fuel stabilization funds earmarked for June, and also redirected about Ksh.39 previously used to cushion kerosene prices into stabilizing diesel instead.

“This morning there has been one or two meetings and they have been able to call off the strike,” stated Roads and Transport CS Davis Chirchir.

But the agreement remains fragile. Transport operators are still demanding a further Ksh.36 reduction in diesel prices in the next seven days, saying if no agreement is reached by next Tuesday, they will return to the streets.

The two sides have now agreed to wait for the President’s return to the country on Thursday, after which Cabinet Secretaries are expected to brief him on Friday before engaging transport sector leaders again on the way forward.

But even as matatus return to the roads, bigger questions remain unanswered.

With part of the remaining stabilization funds now depleted, concerns are growing over how the government will cushion Kenyans from any further fuel price increases in June, especially if global oil market tensions persist.