Matatu Owners Association (MAO) have expressed reservations over a new proposal seeking to grant Transport Cabinet Secretary Kipchumba Murkomen powers to set standard fares for commuters.
Speaking to the media on Saturday, August 12, Matatu Owners Association chairman Albert Karakacha stated that it would be unfair for the government to determine fares given the current state of the economy.
Karakacha explained that they increased the fares after the implementation of the 16 per cent value-added tax (VAT) on fuel products as enshrined in the Finance Act.
However, he indicated they were willing to engage with the CS over the proposal and find an amicable solution to their differences.
"Even prices of commodities in supermarkets have shot up, yet nobody is asking for them to be regulated," he stated.
Proposals for the regulation of fares were included in the National Transport and Safety Authority (Amendment) Bill 2023, sponsored by Kimilili MP Didmus Barasa.
Barasa explains that the bill will protect Kenyans from inflated fare prices that have been skyrocketing in the last few years.
In the new proposals, Murkomen will also be tasked with developing a framework for the implementation of the gazetted fares.
"Without prejudice, the CS may in consultations with the Authority make regulations prescribing the modalities by which public service vehicles retain copies of timetables and fare tables to be displayed for all passengers to see," read the bill in part.
If the bill passes, the CS in charge will be responsible for crafting timelines for reviewing fares.
Currently, independent Saccos reviews fares in consultation with other stakeholders while basing their amendment on various factors, including fuel prices, demonstrations, and holidays like the Christmas festivities.
For instance, the owners announced an increase of fares by 30 per cent in July this year after VAT on fuel was doubled from 8 to 16 per cent.
The 30 per cent was also attributed to the hike in spare part prices.
