Matatu Operators Mull Hiking Fares Following Spike in Fuel Prices

A collage of a vehicle at a filling station adn passengers boarding a matatu in Nairoboi..jpg
A collage of a vehicle at a filling station and passengers boarding a matatu in Nairobi.
Kenyans.co.ke

Matatu operators are considering hiking fares across the country following the spike in fuel prices as announced by Energy and Petroleum Regulatory Authority (EPRA) in the latest monthly review.

Speaking to Kenyans.co.ke on Thursday, September 15, the Matatu Welfare Association Chair Dickson Mbugua admitted that operators were at crossroads on whether to hike fare prices in the country or operate at loss.

Mbugua noted that the Federation of Public Transport, which he serves as Secretary, has convened a meeting next week to chart the way forward.

Matatu Welfare Association Chairman Dickson Mbugua.jpg
Matatu Welfare Association Chairman Dickson Mbugua
Nation

“We are convening a meeting on Tuesday, to discuss whether or not to increase fares because Kenyans have been hit hard and if we hike the cost, they may not comfortably afford them," he explained.

Mbugua revealed that the Federation will seek audience with President William Ruto to consider shielding the public service vehicles (PSVs) from the prices.

“We are looking to lobby the government to consider the PSV sector as an essential service and possibly give some kind of remedy or offer discounted rates,” the MWA Chair stated.

In the announcement by EPRA, the pump prices of fuel hit a record high with super petrol retailing at Ksh179.30 per litre, while diesel and kerosene will retail at Ksh165 and Ksh147 per litre respectively for the next one month.

Notably, the public transport sector is set to feel the pinch the most since the majority of PSVs use diesel. The commodity recorded the highest increase - Ksh25 per litre - despite the state offering a subsidy of Ksh20 on the same unit.

The new prices confirmed fears by Kenyans of an upward review of costs after President Ruto hinted that he would face out subsidies, especially in the energy sector.

During his maiden speech on September 13, Ruto stated that the money channelled to cushion Kenyans from inflation deviated from its course as it mostly benefited select individuals.

“The interventions in place have not borne any fruit. On fuel subsidy alone, the taxpayers have spent a total of Ksh144 billion, a whooping Ksh60 billion in the last four months. If the subsidy continues to the end of the financial year, it will cost the taxpayer Ksh 280 billion.

“In addition to being very costly, consumption subsidy interventions are prone to abuse, they distort markets and create uncertainty, including artificial shortages of the very products being subsidized,” the President stated.

Matatus caught up in a traffic snarl-up at Tom Mboya street near Khoja/Old Mutual terminus
Matatus caught up in a traffic snarl-up at Tom Mboya street near Khoja/Old Mutual terminus in May 2020.
Photo
Ma3Route
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