The objective of Kenyan Government Legal Notices No. 161 of 2003, No. 83 of 2004 and No. 65 of 2005, Was to restore order, reduce accidents, increase passenger safety, reduce conflicts and safeguard private investment in the public transport sector .This notice directed all current and potential paratransit operators in Kenya to establish Paratransit SACCOs ; as a condition for the licensing of their vehicles to operate public service transport. The transport industry is affected by stakeholderswho are affected by the achievement of the organization objectives.Theirinfluence  on the performance ofurban road transportcan be negative or positive, depending on whether their expectations are being met or not. The purpose of this study was to determine the influence of stakeholder’s perceptions of paratransit SACCOs on performance of urban public transport industry in Kenya.The specific objective was to determine the perceptions of paratransit owners on the effect of paratransit SACCOs on the performance urban public transport industry,To ascertain the perceptions of  Local Authority on the effect of paratransitSACCOs on the performance of urban public transport industry and finally To investigate the perceptions of paratransit operators on the effect of paratransitSACCOs on the performance of urban public transport industry. The study targeted 635paratransit (matatu) SACCOS registered in Kenya. A sample of 64 was selected from the registeredSACCO. Data was collected using questionnaire and analyzed using descriptive statistics. Based on the findings of the study, it was concluded that stakeholder’s perceptions of the Paratransit SACCOS significantly influenced the performance of urban road transport in Kenya. The study recommended that the government should adequately engage stakeholders during urban road policy formulations and implementations this will result to the stakeholders ownership of decisions, reduces negative influence and consequently success of the policy.

Key Words: Stakeholders, Paratransit SACCOs, Performance

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