Beginning in September, commuters will face an increase in fares within Nairobi, matatu owners have announced.
This comes after the government moved to introduce 16% Value Added Tax (VAT) on fuel products from September.
Matatu Owners Association chairman Simon Kimutai expressed his displeasure at having to increase fares but explained that the added tax on fuel meant additional costs on public service operators.
He assured commuters that the increase would be “reasonable” and would be based on calculations of the additional costs.
For town services, the increment was expected to be between Kshs10 and Kshs20 depending on the distance covered.
[caption caption="Matatu Owners Chair Simon Kimutai"]
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The increase of levy on fuel was also opposed by the Consumers Federation of Kenya (COFEK) in a statement issued by its Secretary General Stephen Mutoro.
He expressed that the move was not in line with the Kenyan constitution, stating the move was driven by the International Monetary Fund (IMF) and not the Kenyan government.
Mutoro added that should the proposal be implemented, the cost of transportation would further rise leading to inflation of other products.
The government had first tried to introduce the levy on fuel products five years ago but the plan was put on hold for three years.
In 2016, the grace period was extended by two years, an extension that will lapse in the next two years.
[caption caption="Matatus in Nairobi"]
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