How Matatu Fares Are Calculated, And Why They Suddenly Explode in December

Buses and matatus pick up upcountry travellers at Nairobi's famous Machakos country bus station
Long-distance buses at Nairobi's Bus Station area in a photo dated November 2017.
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It is that time of the year again when Kenyans rush to various destinations for holidays and vacations. However, as usual, around this season, public service vehicles (PSVs) usually hike fares, almost triple the price.

The question has, however, been, why do matatus hike fares at this period of the year, and why do the operators get excited when the season approaches? Let us dive into the reasons behind the price hikes. 

Matatu fares in Kenya are not fixed and are largely fluid, informal, and driven by market forces, which explains why passengers often experience sudden spikes, especially in December.

Under normal circumstances, matatu fares are influenced by distance, fuel prices, road conditions, vehicle type, and demand along a specific route. Short routes with high passenger turnover tend to have relatively stable fares, while long-distance or low-demand routes fluctuate more frequently.

Matatus during rush hour at the Fig Tree bus stop along Thika Super Highway, November 12, 2019.
Matatus during rush hour at the Fig Tree bus stop along Thika Super Highway, November 12, 2019.
Kenyans.co.ke

Fuel Considerations

Despite EPRA announcing in December that the fuel prices would remain unchanged after an earlier rise, this could do little in terms of matatus lowering the fares. When pump prices rise, operators pass the cost to passengers almost immediately. 

Even when fuel prices remain stable, the perception of higher operating costs still triggers fare adjustments, particularly during peak periods.

Demand Vs Availability

December holidays introduce a different dynamic altogether: demand explodes. Millions of Kenyans travel upcountry for Christmas, weddings, funerals, and end-of-year holidays. The number of passengers seeking transport far exceeds the available vehicles, giving operators leverage to charge higher fares.

Seasonal Scarcity

Many matatus are withdrawn from regular routes to serve lucrative long-distance trips. This reduces supply in urban areas, pushing up fares even for short journeys within towns and cities.

Weather and Road Conditions  

When travelling upcountry, poor roads increase wear and tear, fuel consumption, and travel time. Operators factor these risks into fares, particularly on rural and upcountry routes where breakdowns are more likely.

NTSA, Police Crackdown

During this time of the year, just as was recently witnessed, the National Transport and Safety Authority and the police announced that there will be increased police presence, roadblocks, and inspections. Altogether, it raises the likelihood of fines or delays. 

Operators often build these anticipated costs into passenger charges, even if no fine is ultimately paid.

At the same time, informal fare setting within the matatu sector makes regulation difficult. While NTSA provides general guidelines, there is no rigid fare-control mechanism. Crew members often adjust prices on the spot, depending on crowd size, time of day, and competition from other vehicles.

Passengers Initiated Hikes

Desperation to get home before Christmas or the New Year leads many to accept inflated prices without protest. Once passengers comply, the higher fare quickly becomes the new temporary norm.

In essence, December fare explosions are driven by a perfect storm of high demand, limited supply, seasonal travel pressure, enforcement risks, and an unregulated pricing culture. Until formal fare structures or stronger consumer protections are introduced, passengers should expect December to remain the most expensive month to ride a matatu in Kenya.

Matatus at a terminal in Nairobi in August 18, 2024.
Matatus at a terminal in Nairobi in August 18, 2024.
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Kenyans.co.ke/
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