As a result of the fuel price increase announced in the most recent monthly review by the Energy and Petroleum Regulatory Authority (EPRA), matatu firms across the country are considering increasing their fares.
Federation of Public Transport Sector (FPTS) says the hike is due to the recent increase in pump prices of fuel.
The Energy and Petroleum Regulatory Authority recently raised fuel prices by KSh20.18 for petrol, KSh25 for diesel, and KSh20 for kerosene.
These products cost KSh179.30, KSh165, and KSh147.94 per liter in Nairobi. The new government of President William Ruto eliminated fuel subsidies, leading to this price hike.
It is significant that the subsidy for diesel and kerosene has been maintained in order to protect customers from the effects of rising prices.
“We are having a major meeting that brings together all players in the transport sector,” FPTS chairman Edwin Mukabana told the ‘Business Daily’. “One of the resolutions will include countrywide adjustment on PSV fares by between 20-30 percent.”
Commuters on all routes would experience the effects of the scheduled matatu rate hike. A 30% increase means that peak-hours commute from Umoja residential estate to the city centre, for example, will be KSh130 up from KSh100.
Those working for the administration of William Ruto have been encouraging citizens to be patient as the government works on a comprehensive solution to the price dilemma.
During his inauguration speech, President Ruto said Kenyan taxpayers have spent a whooping KSh 60 billion in the last four months on subsidies alone. “If the subsidy continues to the end of the financial year, it will cost the taxpayer KSh 280 billion, equivalent to the entire national government development budget,” he said.
Kandara MP Alice Wahome who is a member of the governing UDA party said yesterday: “The pinch to consumers is temporary. Let’s support the new President’s policies. Be patient for the benefits will be beneficial in the long run.”