The National Transport and Safety Authority (NTSA) has announced plans to further regulate how many matatus are allowed on each route.
NTSA Director-General Francis Meja told reporters that a survey will be conducted by the body which will affect how licensing takes place.
"That study will inform our licensing regime. If a route is saturated, we do not need to license more vehicles.
"This is unhealthy competition is not helping anyone," Meja noted.
He added that the study will be a collaborative effort with the Nairobi Metropolitan Area Transport Authority (Namata).
New matatus to be affected
Matatu Owners Association (MOA) chair Simon Kimutai welcomed the move and proposed to have PSV owners advised on which routes to join with their new matatus.
"The regulator needs to license, then allocate matatus to an area where there is demand," Kimutai advised.
He explained that intense price wars among matatu operators are due to poor regulation.
President Uhuru Kenyatta moved NTSA from the Ministry of Transport to place it under Dr Fred Matiang'i at the Ministry of Interior.
The transport body had suffered major public outrage due to alarming numbers of accidents on Kenyan roads.