Stakeholders in the public transport industry have announced an upcoming increase in fares by 10-20 percent following the recent hike in fuel price. The new fare rates will commence on Saturday September 18, 2021.
Speaking toK24 Digital, Matatu Owners Association chairman Simon Kimutai confirmed that the plans to increase fares by the matatu operators is justified given the hike in fuel prices.
Kimutai says the industry is liberalized, giving each Sacco the freedom to determine whether to increase or decrease their fare prices after their independent cost accounting.
“We have not issued a directive instructing the operators to increase fare prices. They are however justified given the recent hike in fuel prices. The industry is liberalized and Saccos have the freedom to determine increases or decreases in fares using their own parameters. They can do their own cost accounting and come up with new prices for their routes,” he said.
The hike in fuel prices, that has been widely protested by Kenyans, was announced on Tuesday September 14, 2021 by the Energy and Petroleum Regulatory Authority (EPRA). The government received massive criticism with Kenyans accusing it of lacking compassion amid the immense economic pressure.
Things are set to worsen as the Kenya Revenue Authority recently announced plans to increase excise duty rates for fuel by 4.97 percent.
Sourced from K24 digital