President Uhuru Kenyatta on Tuesday issued a stern warning to matatu operators over hiking of fares for commuters.
Speaking after chairing a Parliamentary Group meeting at State House, Uhuru directed matatu operators not to increase fares beyond those recommended by the National Transport and Safety Authority (NTSA).
He declared that any transporter who will increase the fares beyond the recommended ones will have their PSV licenses cancelled.
181 Jubilee MPs were present at the meeting which was also attended by Deputy President William Ruto, Jubilee Secretary General Hon. Raphael Tuju and the Jubilee Parliamentary leadership.
During the special meeting, the Jubilee parliamentarians agreed to support President Kenyatta’s proposal to reduce VAT on petroleum products to 8%.
The reduction of the VAT from 16% means petrol price will drop from Sh127 to about Sh118 while those of diesel will come down from Sh 115 to Sh 107 in Nairobi.
They also agreed that there should be budgetary cuts to accommodate the reduction in VAT.
“These budget cuts ask of us in government that we tighten our belts. It also ensures that the sacrifices made by tax-compliant Kenyans are matched by discipline,” Uhuru stated.
National Super Alliance (NASA) party members also pledged their conditional support to Uhuru's memorandum to Parliament cutting levy on fuel.
