This study focused on compliance with regulations governing operations in the public transport sector. Using three SACCO’s with vehicles that ply the Rongai-Nairobi route, the study sought to (i) assess factors that affect Saccos in enforcing labor regulations, (ii) identify challenges Matatu SACCO face while enforcing labor regulations and, (iii) establish ways that SACCOs can use to enhance labor laws compliance in the matatu sector. The study used a mixed method approach in data collection that included review of literature from different sources, as well as collection of primary data from interviews conducted among forty-one respondents in the three SACCOs under study. Key informant interviews were also conducted with officials among them traffic police and Matatu Owners Association representatives. The study was guided by System theory, and used descriptive research design. Telephone interviews were conducted due to the Covid-19 limitations, and the need to comply with the Ministry of health Covid-19 guidelines. The study established that matatu owners contribute to Sacco’s non-compliance to labour laws. The owners who are investors site high business operational costs visa-vie the profit made. Therefore, they cannot sustain the law requirements of a permanent staff. The sector creates informal jobs which limit workers from benefitting from the labour laws provisions in the Employment Act 2007 and the International Labor Laws. The rights provided for includes having employment contracts, provision of social protection in regards to NHIF and NSSF, paid annual leave and maternity leaves. Lack of enforcement has hampered successful implementation subjecting workers to long working hours of up 15 hours in a day. The study also found out that female workers uptake has increased gradually from 2003 to date. The study recommends the need for enhanced training of workers, sector workers and stakeholders’ involvement in decision and policy making on issues affecting the sector and strengthening of government institutions and mechanisms to monitor and constantly evaluate compliance with labour laws. The same can be implemented across the entire public transport sector in Kenya for effective running of the matatu sector. It will also aid in progressive realization of the sector’s economic potential, formalization and job creation capacity of the working generation. Further, the study recommends similar studies to be conducted to bring out other factors that may have been overlooked.

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