Nairobi residents will from Saturday pay more for transport after matatu owners increased fares.
Matatu Owners Association (MOA) chairman Simon Kimutai confirmed the fares would go up by between Ksh10 and Ksh30 once the 16 per cent tax increase on petroleum products takes effect on September 1.
Kimutai affirmed that passengers in Nairobi would pay at least Ksh30, with the maximum depending on the distance covered adding that the hike will not exceed an increase of Ksh30.
“Taxation of fuel greatly affects operators of public service vehicles and the cost has to be passed down to the passengers. We have to meet operational and maintenance costs,” the MOA chairman stated.
Kimutai stated that the decision was arrived at after consultations with members of various Saccos.
“The fares have been adjusted due to the high cost of living. We are aware it will be painful to commuters, but the taxation is also hurting us, as it translates to extra costs,” Kimutai remarked.
He asked long-distance public service vehicles to consult and ensure their new fares are agreed upon with the association which will then announce the reasonable fares later.
In June, while presenting the 2018/2019 Budget in Parliament, Treasury Cabinet Secretary Henry Rotich announced all petroleum products would start attracting a 16 per cent VAT beginning September 1.
This means Kenyans would have to pay an extra Ksh17 on every litre of petroleum product.
Treasury Principal Secretary Kamau Thugge stated the move was in line with Kenya’s promise to the International Monetary Fund two years ago.
