Although paratransit–with its flexible operations and intense competition–often appears to be ‘chaotic’, it is in fact a complex system involving politicians, police, bureaucrats, diverse vehicle owners, insurance companies, umbrella and route associations, drivers, touts, route managers, mechanics and, of course, the users. The way these actors interact produces the distinct characteristics we associate with paratransit, which includes no schedules, fluctuating fares, variable stops and sometimes routes, competition on the road, formation of cartels, poor working conditions for labour and, on the positive side, flexibility and demand responsiveness–for those who can pay. The apparent complexity of paratransit emerges out of the way in which key actors within the system relate, capture and jockey for benefits, as well as navigate–and undermine–the formal institutional environment set up (often poorly) to regulate the public transport system.

This chapter aims to give a historically informed analysis of some of the common political and socio-economic dynamics of paratransit. Many studies have examined public transport, including paratransit operations, and we make liberal use of this excellent work. However, few of these studies have focused on the overall political economy aspects of paratransit, in particular the politics and policy gaps that are the key driving factors influencing the sector. Such analysis is critical for navigating the difficult terrain of badly needed reform. The next section briefly reviews existing knowledge on paratransit and uses this to consider the way in which the politics of the system tends to operate in Sub-Saharan Africa. The chapter then explores how the institutional environment creates incentives for certain kinds of characteristics and action–formal and informal–to emerge and play out in the city streets. This is followed by a consideration of the specific case of Nairobi and attempts to explain why the policy dialogue around paratransit in Nairobi tends to be confined to attempts at punitive paratransit regulation without sufficient or convincing information on costs and impact, and most often without any success in implementation. In section 4, the authors look at the dynamics of