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| Heavy traffic jam in Nairobi |
Commuters across the country are bracing for tougher days ahead after matatu operators announced an immediate increase in fares, triggered by a sharp spike in fuel prices.
The move follows the latest review by the Energy and Petroleum Regulatory Authority (EPRA), which saw diesel prices jump by KSh40.30 per litre and super petrol rise by KSh28.69.
The new rates, effective from April 15 to May 14, now place diesel and petrol at over KSh206 per litre in Nairobi.
In a late-night statement on Tuesday, April 14, the Kenya Transporters Association Ltd (KTA) warned that the surge in diesel prices, widely used by matatus and freight vehicles, has dealt a heavy blow to the sector.
According to the association, fuel alone accounts for about 55 percent of operating costs, meaning any increase directly hits the bottom line.
KTA estimates the latest hike will push overall transport costs up by 13 to 14 percent, forcing operators to review fares immediately to stay afloat.
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| Fuel prices have hit a new high in the April-May review |
“Such a substantial rise in input costs cannot be absorbed sustainably,” the association said, urging members to adjust pricing structures and engage customers transparently.
Matatu operators have echoed the same stance. Industry leaders confirmed that fare increases took effect from Wednesday, April 15, with passengers expected to shoulder the burden.
“We have no choice. Diesel has gone up significantly, and that cost has to be reflected in fares,” said a sector official.
Despite government efforts to cushion consumers, including reducing VAT on fuel from 16% to 13% and deploying KSh6.2 billion from the Petroleum Development Levy, transporters insist the relief is not enough to offset the shock.
The latest developments now set the stage for a ripple effect across the economy, with higher transport costs likely to push up prices of goods and services, piling more pressure on already strained household budgets.
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