Public transport systems in contemporary Sub-Saharan African cities are heavily reliant upon paratransit services. These services are defined as informal transportation which operates between the public and individual private spheres. In Africa paratransit is characterized by low quality of vehicles and chaotic management but it also provides cheap, accessible and flexible transport solutions for the urban poor. It is typically poorly regulated and operates as a set of informal businesses. A common result of weak public sector regulation and a fare strategy in which owners claim a fixed daily revenue target and drivers who keep the variable balance as income, is destructive competition and poor quality of service. There is an incontrovertible case for improving the quality, reliability and coverage of public transport systems, and some city governments have attempted to do so by initiating reform projects that envisage the phased replacement of paratransit operations with formalised bus rapid transit systems. In this book the authors argue that there are, however, path dependencies and constraints that limit the possible extent of public transport system reform. Paratransit operations also have some inherent advantages with respect to demand responsiveness and service innovation. Attempts to eradicate paratransit may be neither pragmatic nor strategic. Two future scenarios are likely: hybrid systems comprised of both paratransit and formally planned modes; and systems improved by upgrades and strengthened regulation of existing paratransit services. The business strategies and aspirations of incumbent paratransit operators in three case cities - Cape Town, Dar es Salaam and Nairobi - are discussed, as well as their attitudes towards emerging public transport reform projects. International experiences of hybrid system regulation and paratransit business development are reviewed in order to explore policy options. The authors contend that policies recognising paratransit operators, and seeking contextually appropriate complementarity with formalised planned services, will produce greater benefits than policies ignoring their continued existence.

Public transport systems in contemporary Sub-Saharan African cities are heavily reliant upon paratransit services. These services are defined as informal transportation which operates between the public and individual private spheres. In Africa paratransit is characterized by low quality of vehicles and chaotic management but it also provides cheap, accessible and flexible transport solutions for the urban poor. It is typically poorly regulated and operates as a set of informal businesses. A common result of weak public sector regulation and a fare strategy in which owners claim a fixed daily revenue target and drivers who keep the variable balance as income, is destructive competition and poor quality of service. There is an incontrovertible case for improving the quality, reliability and coverage of public transport systems, and some city governments have attempted to do so by initiating reform projects that envisage the phased replacement of paratransit operations with formalised bus rapid transit systems. In this book the authors argue that there are, however, path dependencies and constraints that limit the possible extent of public transport system reform. Paratransit operations also have some inherent advantages with respect to demand responsiveness and service innovation. Attempts to eradicate paratransit may be neither pragmatic nor strategic. Two future scenarios are likely: hybrid systems comprised of both paratransit and formally planned modes; and systems improved by upgrades and strengthened regulation of existing paratransit services. The business strategies and aspirations of incumbent paratransit operators in three case cities - Cape Town, Dar es Salaam and Nairobi - are discussed, as well as their attitudes towards emerging public transport reform projects. International experiences of hybrid system regulation and paratransit business development are reviewed in order to explore policy options. The authors contend that policies recognising paratransit operators, and seeking contextually appropriate complementarity with formalised planned services, will produce greater benefits than policies ignoring their continued existence.

This book is about business in Kenya. Starting from theories of institutions as formal and informal rules that shape human behaviour, it examines the institutional context for business and the ways in which firms and other organisations are formed, operate, and interact. Some of the institutions are internal to Kenya, but others are regional, continental or global in their origins and impact. The book examines how these institutions interact to create incentives for certain types of investment, and disincentives for others. It also discusses the strategies that government can adopt to strengthen the Kenyan business system and make it more competitive.The book originated in a three-year research project on Business Systems in Africa carried out as part of a collaboration between the Institute for Development Studies of the University of Nairobi, and the Centre for Development Research, Copenhagen. The studies involved more than a dozen researchers in an examination of the influence of political, economic and social institutions on Kenyan firms of all sizes. Its approach, which uses sectors of the economy as lenses through which to view the business system, has provided a rich tapestry of information useful for policymakers, students and scholars.The editors are based at the Institute for Development Studies, University of Nairobi. Dorothy McCormick is Associate Research Professor and Director of the Institute. She specialises in industrial development with particular emphasis on micro and small enterprises. Patrick O. Alila is Research Professor and was the Institute's Director from 1995 to 2001. Trained in political science and development administration, he specialises in rural development and local level institutions. Mary Omosa is Senior Research Fellow and University of Nairobi UNESCO/UNITWIN Chair. Her major research focus is on development sociology and rural livelihoods.