• By Raymond Momanyi

PSV Car Insurance Kenya | Taxi, Matatu & Bus Cover Guide

Understand PSV insurance in Kenya for taxis, ride-hailing cars, matatus, buses and tour vehicles. Compare cover and request a quote through Imana.

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Author: Raymond Momanyi, Founder & CEO, Imana Insurance Agency Kenya Ltd

A complete guide to PSV car insurance in Kenya covering taxis, ride-hailing vehicles, matatus, buses, tour vehicles, premiums, passenger liability, claims and online quotations through Imana.

PSV Car Insurance in Kenya: Taxi, Matatu, Bus and Ride-Hailing Guide

A Public Service Vehicle is more than a car on the road. It may be a driver’s daily income, a family’s investment, a SACCO’s asset or a company’s promise to move passengers safely. When that vehicle stops, money stops with it.

That is why ordinary private-car insurance is not suitable for a vehicle carrying passengers for hire or reward. A taxi, ride-hailing car, matatu, bus, shuttle or tour vehicle must be insured under the correct Public Service Vehicle class.

This guide explains PSV car insurance in Kenya, the available cover options, factors affecting premiums, passenger liability, monthly and annual policies, claims and how to compare quotations through Imana Insurance Agency Kenya Ltd.

Explore Imana’s PSV Insurance service or request a motor insurance quotation. Call or WhatsApp +254 796 209 402 for assistance.

What is PSV insurance in Kenya?

PSV insurance is motor insurance designed for vehicles authorised and used to carry passengers for hire or reward. Because these vehicles spend more time on the road, carry members of the public and operate commercially, insurers assess them differently from privately used cars.

Subject to the selected policy, PSV insurance can protect against legal liability arising from death, bodily injury or property damage caused to third parties. Broader options may also cover fire, theft or accidental damage to the insured vehicle.

The policy must match the vehicle’s actual use. A privately insured vehicle used as a taxi or on a ride-hailing platform may fall outside the declared use, exposing the owner to rejected or disputed claims.

Is PSV insurance compulsory?

Kenya’s Insurance (Motor Vehicles Third Party Risks) Act requires a motor vehicle used on a road to carry insurance against specified third-party risks. Vehicles carrying fare-paying passengers require the appropriate certificate and cover for their class of use.

Third-party cover is the legal floor, not always the financial ceiling. A vehicle owner may choose broader protection for fire, theft and accidental damage depending on the value of the vehicle, financing requirements and tolerance for risk.

Insurance does not replace the vehicle’s NTSA licensing, inspection, roadworthiness, driver qualification or other transport obligations. Both insurance and operational compliance must remain valid.

Which vehicles require PSV insurance?

The correct classification depends on how the vehicle is licensed and used. PSV insurance commonly applies to:

• App-based ride-hailing cars operating through platforms such as Uber, Bolt and Little Cab
• Traditional taxis and chauffeur-driven vehicles
• Matatus carrying passengers on licensed routes
• Minibuses and buses
• Hotel and airport transfer vehicles carrying paying passengers
• Tour vans, safari vehicles and tour-service vehicles
• Shuttles operated commercially
• Institution or staff-transport vehicles where classified as PSV
• School transport where the vehicle’s licensing and use require the relevant passenger-carrying cover

Do not choose the insurance class based only on the vehicle’s body type. A Toyota Sienta used privately and the same model used for ride-hailing represent different risks and require different policy classifications.

Main types of PSV insurance cover

Third-Party Only PSV insurance

Third-Party Only is the minimum form of motor protection commonly purchased for a PSV. Subject to the law and policy wording, it addresses qualifying legal liability for injury or death suffered by third parties and damage to third-party property.

For a PSV, passenger exposure must be correctly declared and included under the appropriate policy. Never assume a private motor certificate protects fare-paying passengers.

Third-Party Only does not ordinarily pay for accidental damage to the insured vehicle. If the taxi, matatu or bus is damaged in an accident and the owner is responsible, the repair cost normally remains with the owner unless another responsible party can be pursued successfully.

Third-Party, Fire and Theft PSV insurance

Third-Party, Fire and Theft adds specified protection for loss or damage to the insured vehicle caused by fire or theft, alongside the underlying third-party liability cover.

It can suit an operator who wants more protection than Third-Party Only but cannot or does not wish to purchase full comprehensive cover. Accidental collision damage to the insured vehicle is not ordinarily included unless the policy expressly provides otherwise.

Comprehensive PSV insurance

Comprehensive PSV insurance can include accidental damage to the insured vehicle, fire, theft and qualifying third-party liability, subject to the insurer’s terms, excesses, limits and exclusions.

It may be particularly relevant where:

• The vehicle has a substantial market value
• The vehicle is financed and the lender requires comprehensive cover
• Repair or replacement would create serious financial strain
• The operator depends on the vehicle for daily income
• The vehicle is part of a managed fleet

Comprehensive does not mean every loss is covered. The policy’s declared use, authorised drivers, excesses, security requirements and exclusions still apply.

PSV taxi and ride-hailing insurance

Ride-hailing vehicles operate differently from private cars. They travel more frequently, carry changing passengers, operate across wide areas and may work late hours. These factors influence underwriting and pricing.

A driver operating through Uber, Bolt, Little Cab or another platform should disclose the commercial passenger-carrying use when applying. Using a private motor policy because it is cheaper can become painfully expensive after an accident.

Depending on the insurer, PSV taxi cover may be available annually or for shorter periods. A short-term certificate can provide flexibility, but operators should compare the total annual cost and risk of accidental gaps between policies.

Matatu insurance in Kenya

Matatu insurance is designed for fare-paying passenger vehicles operating under the relevant licensing and transport framework. The quotation may consider:

• Licensed passenger capacity
• Route and operating territory
• Vehicle make, age and value
• SACCO or company ownership
• Driver history and experience
• Claims record
• Third-party, passenger and property-damage exposure
• Required cover period
• Comprehensive benefits and excesses, where selected

Passenger capacity must be declared accurately. Overloading or operating outside legal and policy conditions can create regulatory problems and complicate claims.

Bus and minibus insurance

Buses and minibuses may carry more passengers and present greater severity exposure when an accident occurs. Insurers can request detailed information about the vehicle, seating capacity, route, inspection status, management controls and claims history.

Fleet operators should consider more than the certificate price. Risk management, driver supervision, maintenance records, tracking, passenger safety and fast claims reporting can influence both losses and future insurance terms.

Tour-service and safari vehicle insurance

Tour vans and safari vehicles may travel long distances, operate on rough roads or cross national borders. The owner must disclose tour-service use and confirm:

• Whether the policy covers the intended territory
• Passenger legal liability
• Off-road or game-park use restrictions
• Emergency assistance and towing limits
• Windscreen and special-accessory protection
• COMESA Yellow Card requirements for cross-border travel
• Whether extensions are needed for political violence, terrorism or other special perils

A standard Kenyan motor certificate should not be assumed to provide every protection required outside Kenya.

What is passenger legal liability?

Passenger legal liability relates to the insured’s legal responsibility for injury or death involving passengers carried in the vehicle, subject to the law and the policy.

This is central to PSV insurance because passengers are members of the public paying or being transported under the vehicle’s declared commercial use. The certificate and policy must correspond with the vehicle category and licensed passenger capacity.

The existence of passenger liability cover does not remove the operator’s duty to maintain the vehicle, use qualified drivers, comply with capacity rules and follow transport regulations.

How much does PSV insurance cost in Kenya?

PSV premiums vary widely because a ride-hailing saloon car is not priced like a 33-seater bus. The insurer may consider:

• Type of PSV operation
• Seating or passenger capacity
• Vehicle value and year of manufacture
• Make, model and repair cost
• Route, territory and annual mileage
• Driver experience and history
• Previous accidents and claims
• Cover type and policy period
• Third-party property-damage limits
• Comprehensive excess and extensions
• Fleet size and risk-management controls

Indicative market observations sometimes place annual Third-Party Only cover for a PSV taxi at around KSh 7,500, with some short-term options around KSh 2,000 for one month. Matatu and bus premiums can be substantially higher because their passenger capacity and exposure are different.

These figures are illustrations, not guaranteed quotations. Prices, statutory charges, benefits and underwriting rules change. Obtain a current quotation for the exact registration number, vehicle class and use.

Monthly versus annual PSV insurance

Monthly or short-term cover

Short-term PSV insurance can help an operator who needs limited-period protection or cannot immediately commit to a full annual premium.

The trade-offs may include:

• Higher cumulative cost if repeatedly renewed throughout the year
• More renewal administration
• Greater risk of forgetting the expiry date
• Possible limitations compared with annual cover
• An uninsured gap if the next certificate is not activated in time

Annual cover

Annual insurance offers a longer continuous cover period and can be more economical than buying multiple short-term certificates. It also reduces frequent renewal pressure.

Comprehensive insurance may sometimes qualify for an approved instalment arrangement, but terms vary. Do not assume cover continues after a missed instalment; obtain the arrangement and consequences in writing.

What can comprehensive PSV insurance include?

Depending on the insurer and selected policy, benefits may include:

• Accidental damage to the insured vehicle
• Theft or attempted theft
• Fire damage
• Third-party bodily injury and property damage
• Passenger legal liability
• Windscreen cover up to an agreed limit
• Entertainment or communication equipment up to a stated limit
• Towing and recovery
• Road rescue
• Political Violence and Terrorism extension
• Excess Protector
• Loss-of-use or courtesy-vehicle benefits where available

Every benefit should appear in the quotation, schedule or policy wording. A verbal assurance is not a substitute for written cover.

Excesses and PSV comprehensive claims

An excess is the portion of an admissible claim that the policyholder bears. Comprehensive PSV policies may apply standard, young-driver, inexperienced-driver, theft or other compulsory excesses.

Excess Protector may reduce or reimburse a specified standard accidental-damage excess, subject to its own limits and exclusions. It should not be interpreted as removing every possible excess.

Before buying, ask what amount would be deducted if the vehicle were involved in a typical accident. A low premium combined with a heavy excess may not offer the value expected.

Common PSV insurance exclusions and claim problems

Claims may be rejected, reduced or delayed where the loss falls outside the policy or essential information is missing. Common problem areas include:

• Insuring the vehicle as private while using it as a PSV
• Using an unlicensed, unauthorised or disqualified driver
• Driving under the influence of alcohol or drugs
• Carrying more passengers than permitted
• Operating outside the authorised use, route or territory
• Allowing the certificate or policy to expire
• Failing to disclose material vehicle modifications
• Mechanical breakdown, wear and tear or poor maintenance
• Unapproved repairs undertaken before inspection
• Late reporting or missing police and claims documents
• Fraudulent or exaggerated claims

The operator should read the policy and maintain supporting transport records instead of treating the certificate as the entire contract.

Documents required for a PSV insurance quotation

Requirements vary, but the intermediary or insurer may ask for:

• National ID or passport
• KRA PIN
• Vehicle logbook or acceptable proof of ownership
• Registration number
• Make, model and year of manufacture
• Licensed seating capacity
• Exact use: taxi, app-based ride-hailing, matatu, bus, shuttle or tour service
• Route or operating territory
• Desired cover period
• Previous policy or certificate where applicable
• Claims history
• Vehicle valuation for comprehensive cover
• Financier’s interest, where the vehicle is financed
• Relevant operator or licensing information

Providing accurate details prevents the wrong class of certificate from being issued.

How to buy PSV insurance online through Imana

1. Describe the PSV accurately

Share the vehicle details, seating capacity, route or operating territory and exact commercial use.

2. Choose the cover type

Indicate whether you require Third-Party Only, Third-Party Fire and Theft or Comprehensive cover, and whether the policy should be short-term or annual.

3. Compare available terms

Imana approaches selected insurers and helps you compare premium, limits, benefits, excesses and conditions.

4. Submit the required documents

Provide clear and valid copies of the identification, ownership and underwriting documents requested.

5. Review and pay

Confirm the insurer, vehicle registration, PSV class, period of cover and total premium before paying through the authorised channel.

6. Receive and verify the certificate

Cover begins only after the insurer accepts the risk, payment requirements are satisfied and a valid certificate or policy confirms inception. Check the registration number, class, start date and expiry date immediately.

What to do after a PSV accident

Safety comes first. Obtain medical assistance, protect passengers and avoid creating further danger at the scene.

Then:

1. Report the accident to the police where required.
2. Notify the insurer or Imana immediately.
3. Take photographs and record the location, time, vehicles and parties involved.
4. Collect witness, passenger and third-party details where reasonably possible.
5. Do not admit liability or negotiate a private settlement without guidance.
6. Do not authorise major repairs before insurer inspection or approval.
7. Preserve the police abstract, driver’s licence, inspection records, claim form, repair estimate and other requested evidence.
8. Cooperate with the insurer, assessor, investigator and appointed repairer.

Read the detailed Motor Insurance Claims Process in Kenya or submit a request through Imana Claims Assistance.

PSV insurance and the COMESA Yellow Card

A PSV travelling across borders may need a COMESA Yellow Card. The scheme provides regional third-party motor protection recognised across participating countries and supports the handling of claims involving visiting motorists.

The Yellow Card does not automatically convert a domestic policy into comprehensive cross-border cover. Confirm the participating countries, vehicle class, travel dates and territorial extensions before departure.

Learn more through Imana’s COMESA Insurance page.

How to compare PSV insurance quotations

The cheapest certificate can hide an expensive gap. Compare:

• Correct PSV classification
• Cover type
• Passenger capacity and liability
• Third-party property-damage limit
• Policy start and expiry dates
• Territorial scope
• Comprehensive vehicle value
• Standard and compulsory excesses
• Fire and theft terms
• Political Violence and Terrorism extension
• Windscreen, towing and rescue limits
• Approved repair or assessment process
• Claims-reporting channels
• Short-term versus annual total cost
• Insurer’s underwriting conditions

Imana helps translate these differences into practical choices before the operator commits.

Frequently asked questions

Can I use private car insurance for Uber or Bolt?

No. A vehicle carrying paying passengers through a ride-hailing platform must be insured under the correct PSV taxi or applicable commercial passenger-carrying class. Private use does not reflect the actual risk.

How much is PSV taxi insurance in Kenya?

The price depends on the insurer, vehicle, period and cover type. Indicative Third-Party Only observations may be around KSh 7,500 annually or KSh 2,000 for a one-month option, but a current personalised quotation is required.

Can I buy one-month PSV insurance?

Some insurers offer short-term PSV options for eligible vehicle classes. Availability, price and benefits must be confirmed at the time of quotation.

Does PSV insurance cover passengers?

Appropriate PSV insurance addresses qualifying passenger liability according to the law, certificate and policy. The vehicle category and licensed passenger capacity must be declared correctly.

Does Third-Party Only cover damage to my taxi?

It does not ordinarily pay for accidental damage to the insured taxi. Comprehensive cover is required for eligible own-vehicle accidental damage, subject to the policy.

Can a financed PSV take Third-Party Only cover?

A financier will commonly require comprehensive insurance to protect its interest in the vehicle. The owner should follow the financing agreement and have the financier’s interest noted where required.

Is a valuation required?

An approved valuation is commonly required for comprehensive PSV insurance. Third-Party Only quotations may not require a vehicle valuation, although other documentation remains necessary.

What happens if my PSV certificate expires?

The vehicle should not operate without valid insurance. Renew before expiry because an accident during an uninsured gap can expose the owner to direct financial and legal consequences.

Can a PSV policy include COMESA cover?

A COMESA Yellow Card or territorial extension may be arranged for eligible cross-border travel. Confirm the countries, dates and vehicle use before leaving Kenya.

Can I compare PSV quotes through Imana?

Yes. Imana Insurance Agency Kenya Ltd helps PSV owners compare available quotations from selected insurers, understand the terms and arrange the selected cover.

Why arrange PSV insurance through Imana?

Imana Insurance Agency Kenya Ltd is an insurance intermediary based in Westlands, Nairobi, serving customers across Kenya through digital channels.

We help PSV owners:

• Identify the correct insurance class
• Compare quotations from selected insurers
• Understand passenger and third-party protection
• Review comprehensive benefits and excesses
• Arrange short-term or annual cover where available
• Submit documents digitally
• Check policy and certificate details
• Receive renewal and claims-notification support

The insurer underwrites the risk, issues the policy and determines claims. Imana guides the client through selection, placement and communication with the insurer.

Get a PSV insurance quote today

Whether the vehicle is a taxi weaving through Westlands, a ride-hailing car crossing Nairobi, a matatu connecting towns, a bus carrying communities or a tour van exploring East Africa, the principle is the same: insure the vehicle for what it actually does.

PSV insurance information: https://imana.co.ke/psv-insurance
Request a motor quotation: https://imana.co.ke/motor-quote
Motor insurance guide: https://imana.co.ke/insurance/motor-insurance
COMESA insurance: https://imana.co.ke/comesa-insurance
Claims assistance: https://imana.co.ke/claims-request
Contact Imana: https://imana.co.ke/contact-us
Quotation comparison: https://imanainsurance.com
Call/WhatsApp: +254 796 209 402
Email: insurance@imana.co.ke
Office: 4th Floor, Krishna Centre, Woodvale Grove, Westlands, Nairobi, Kenya

Final word

For a PSV owner, insurance is not paperwork resting in the glovebox. It is part of the operating system of the business—protecting passengers, preserving an asset and keeping one accident from swallowing years of work.

Declare the right use. Compare more than price. Keep the cover active. And when the road changes without warning, let the policy be ready.

Compliance disclaimer

This article provides general insurance information and does not constitute a binding quotation, legal advice or guarantee of claim payment. Premiums, benefits, limits, excesses, exclusions, eligibility and short-term options vary by insurer and may change. Cover begins only after the selected insurer accepts the risk, all requirements are satisfied, the premium is paid and valid policy documentation confirms inception. Claims are assessed by the underwriting insurer in accordance with the policy wording, evidence, circumstances and applicable law. Imana Insurance Agency Kenya Ltd acts as an insurance intermediary.