Pain as Matatus Hike Fares Over Fuel Increase

Matatu operators have asked Kenyans to brace themselves for higher fares following the increase of fuel prices in the latest Energy and Petroleum Regulatory Authority (EPRA) monthly price review.

The cost of Super Petrol and Diesel was increased by Ksh5 per litre from Tuesday, March 15 to April 14.Matatu Owners Association (MOA) Chair Simon Kimutai noted that members had already been informed to pass the additional cost onto their passengers.

“We are in business, and I have told our members when they have done cost accounting, they should pass the cost to passengers. It’s common sense to pass the cost to the consumers.”

“Guys who are using matatus should brace themselves for a fare hike,” he stated.

Fare hikes would force millions of Kenyans, already feeling the pinch of increased food prices, to dig deeper into their pockets.

The move by Matatu owners comes soon after the Kenya Transporters Association (KTA), whose members move cargo, announced a 5% increase in prices due to the fuel hike.

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Manufacturers and traders who will feel the pinch of the increased transport costs could also pass on the cost to consumers, leaving Kenyans facing a potential further increase in prices of essential items.

“KTA wishes to advise transporters countrywide to increase their transport rates by a minimum of 5 per cent to sustain their businesses under the current circumstances and to circumvent a total collapse of their ventures.”

“Transport rates have remained constant from the period when the diesel pump prices in Mombasa were between Sh75 and Sh80 per litre, compared to the current Sh108-Sh110 per litre. Transporters margins can no longer sustain any increase in costs, and regrettably have to pass this increase to the cargo owners for the road transport sector to survive,” KTA noted in their statement.

EPRA highlighted the implementation of a Ksh20 government subsidy per litre as it announced the price review, a move meant to cushion Kenyans from the skyrocketing fuel prices.

Kimutai called for a special subsidy to cushion those in the transport sector.

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