•On June 30, EPRA increased fuel prices, with petrol retailing at 13.49, diesel at Sh12.39 and kerosene at Sh11.96 in Nairobi.
•EPRA has revised fuel prices as 16% VAT takes effect on Wednesday, double the previous 8%.
Image: THEURI KIBICHO
Kenyans will have to dig deeper into their pockets after Matatu Owners Association announced a fare hike of 30 per cent from Wednesday.
Association chairman Albert Karakacha told the press in his Tumaini House boardroom the increase is in response to the nationwide increase in fuel prices.
“We announce the planned fare hike with regret due to the recent increase in fuel prices brought about by the Finance Act 2023,” Karakacha said.
Karakacha was flanked by association CEO Patricia Mutheu and other officials.
Following the hiking of fares, PSV from regions such as Kakamega, Bungoma, Busia, Vihiga and Mumias to Nairobi now increase fares between Sh200 and Sh300.
PSVs plying Nairobi to Meru, Embu and Isiolo will charge Sh100 and Sh 150 extra while those operating within Nyeri, Kirinyaga, Murang’a, Nyandarua, Laikipia and Nyahururu will hike fares by Sh150.
Long-distance PSVs plying Kitale, Bomet, Kericho, Narok, Kapenguria, Baringo, Eldoret, Nakuru, Kapsabet, and Naivasha routes will hike fares by between Sh100 and Sh200.
PSVs plying Kisumu, Homa Bay, Migori and Kisii routes will hike fares by Sh100 to Sh200.
PSVs within town service in the Nyanza region will increase fares by Sh10 to Sh30.
Those in Mombasa town service will hike fare by Sh20 while PSVs plying Mombasa to other towns such as Voi, Malindi, Ukunda, Kilifi, Lamu, Tana River, Wundanyi and Mwatate will hike fares by between Sh30 and Sh70.
PSVs in towns of Kajiado, Machakos, Murang’a and Kiambu will hike fares by Sh20 to Sh50.
PSVs operating within Nairobi will hike fares by between Sh10 and Sh30.
The hike in fares is a blow to the public even as the cost of living skyrockets due to high taxes imposed by the Finance Act.
Karakacha said the sharp increase in fuel costs, coupled with other operational expenses, including an increase in the cost of spare parts, and loan interests among others, has forced the association to reevaluate its pricing structure to ensure the continued sustainability of services.
He said the association is aware of the global economic crisis that has affected many sectors.
Karakacha said as operators, they have been grappling with mounting financial pressures, especially the hike in fuel prices that threatens the viability of their businesses.
He said there was intense consultation among stakeholders.
Karakacha said the increase of 30 per cent will be effective July 5.
He said the association understands the potential impact on commuters and the wider public.
However, he said, it is essential to strike a balance between maintaining a reliable and efficient transport system and addressing the economic realities faced by matatu owners.
Karakacha said the association is aware that passengers are already grappling with financial burdens, and they are undertaking the fare adjustment as a last resort.
“We remain committed to providing safe, reliable, and affordable transport services to the Kenyan public, and we will continue to explore all possible avenues to mitigate the impact on commuters," he said.
The association urged the government to consider subsidising fuel prices for PSV operators and alleviate the burden on both matatu operators and passengers.
On June 30, EPRA increased fuel prices, with petrol retailing at 13.49, diesel at Sh12.39 and kerosene at Sh11.96 in Nairobi.
EPRA has revised fuel prices as 16 per cent VAT takes effect.
The authority announced an increase in petrol by 13.49, diesel by Sh12.39 and kerosene by Sh11.96 in Nairobi.
"Pursuant to the Finance Act, 2023, the Value Added Tax (VAT) on Super Petrol (PMS), Diesel (AGO) and Kerosene (IK) have been revised from eight percent to 16 percent, effective July 1, 2023," the statement read.
"EPRA has recalculated the maximum pump prices that will be in force from July 1 to July 14,2023 taking into account VAT at 16 per cent."
In Mombasa super petrol will be Sh192.48, diesel Sh176.63 and kerosene Sh170.4.
In Kisumu, the price of super petrol will retail at Sh195.34, diesel at Sh179.89 and kerosene at Sh173.68.
In Nakuru super petrol will retail at Sh194.60, diesel at Sh179.14 and kerosene at 172.93. In Eldoret, super petrol will retail at 195.36, diesel at Sh179.69 and kerosene at Sh173.69.
Previously, petroleum products were subjected to eight per cent VAT.
The rise is a result of the Finance Act 2023 which sets VAT on fuel at 16 per cent as the indebted government seeks to generate income insteadof borrowing.