Hours after the Energy and Petroleum Regulatory Authority (EPRA) increased fuel prices, matatu bosses revealed that fares would go up for long-distance travellers across the country as part of the measures to cushion operators.
Speaking to Kenyans.co.ke, Branden Marshall, an official of the Association of Matatu Operators (AMO) noted that this would affect passengers travelling to the Western region, Coast among others from the Central Business District (CBD).
He added that prices would be increased during off-peak hours for matatus accessing the CBD.
"For instance, if during peak hours the fare is Ksh100 and off-peak hours it is Ksh50. The prices will now remain constant at Ksh100 throughout the entire day," he pointed out.
Alluding to this, Marshall affirmed that the move would cushion the investors and stakeholders owing to the increase in fuel prices that has a ripple effect on the economy.
"There's no unity in the matatu industry so we need to maintain the peak and off-peak hours prices to curb some Saccos from offering different prices other than the standard," he added.
He noted that the matatu sector bore the brunt, emphasizing that they had to deal with targets, payment of premium insurance, paying of employees as well as servicing loans at the end of the month.
"In one route, you find that we have more than ten Saccos, and they all have set targets. So, this primarily leads to some overloading and carrying excess passengers to raise the amount needed.
"So, if a matatu covering ten trips consumes Ksh4,500 of fuel and right now it consumes Ksh5,000, to cover the same trips, they end up making losses," he explained.
Proposing a solution to the situation, he noted that the government ought to create a conducive environment for business people by creating a win-win situation for all parties involved.
He pointed out that a meeting involving all stakeholders would also assist in addressing the issues faced within the transport industry.
On the other hand, Matatu Owners Association (MOA) of Kenya boss Simon Kimutai also opined that the government needs to subsidise fuel in a bid to cushion the market from the ravaging effects.
"The government should consider restoring the subsidies as this affects Kenyans who go to their day-to-day activities to grow the economy," he told Kenyans.co.ke.
On Sunday, May 14, EPRA increased the prices of Super Petrol, Diesel and Kerosene by Ksh3.40 per litre, Ksh6.40 per litre and Ksh15.19 per litre respectively.
In Nairobi, this translated to Ksh182.70 for petrol, Ksh168.40 for Diesel and Kerosene rose to Ksh161.13.
