Kenyans are staring at tougher times ahead after Matatu Owners Association (MOA) announced a 40 - 50 per cent fare hike following the recent increase in fuel prices.
According to the association, the fares will increase between Ksh30 and Ksh50 during peak and off-peak hours for areas around Nairobi and its metropolis.
Further, the timelines for charging these amounts will be extended in order to capitalise on the rates.
In an interview with Kenyans.co.ke, Brendan Marshall, traffic coordinator and senior MOA member said that the sharp increase in fuel costs creates a ripple effect on other commodities which forced them to re-evaluate their pricing structure.
"For instance, a matatu that initially charged Ksh100 during peak hours will now charge between Ksh120 or Ksh150. We will also extend the peak hours which previously lasted from 6:00 am to 8:00 am, and will run up to 10:00 am," he said.
"In the evening, the peak hours will begin an hour earlier and start at 4:00 pm and last till 7:00 pm. During this time, the fare will cost around Ksh150. After 7:00 pm, the fare will remain a constant Ksh100."
Marshall also explained that during off-peak hours, fares will hike by Ksh30 to Ksh50, meaning that if a matatu was charging Ksh50, it will now charge Ksh70 or Ksh80.
He added that the move is aimed at cushioning their business from adverse effects occasioned by the fuel hike.
"This will cause a rift between us and our workers, because at the end of the day, targets need to be met. Most of the times, the cars are purchased on loans so the banks expect their cut, the owners expect their cut as well, so it's high time we hike the prices."
"At the end of the month, we have to pay insurance premiums, city council averaging Ksh7,000, traffic officers also expect their cut, so this is a dire situation that needs to be addressed."
He noted that the new prices would come into effect instantly, noting that the matatu sector was not given a grace period to adjust to the new prices.
"As from today, since the fuel prices came into effect midnight. We did a spot-check and found that some petrol stations were hoarding fuel at around 9:00 pm yesterday so that they adjust new prices so we cannot give a grace period," he said.
He advised passengers to make use of off-peak fare rates and also use public transport only when necessary to cut down on costs.
Additionally, Super Metro CEO Nelson Nduki, also confirmed to Kenyans.co.ke that the sacco would convene a meeting to discuss the impact of the new hike.
"In the course of the day, we will decide by how much. In the evening, we will have made a decision," he said.
On Thursday, Energy and Petroleum Regulatory Authority (EPRA) increased the fuel prices of petrol, diesel, and kerosene prices by Ksh16.96, Ksh21.32, and Ksh33.13 per litre, respectively.
This means that the prices will now retail at Ksh211.64, Ksh200.99, and Ksh202.61 in Nairobi.
