Matatu owners announce fare hike countrywide after fuel price increase

Matatu Owners Association announces fare hike for long-distance travelers after EPRA increased fuel prices
Matatu Owners Association announces fare hike for long-distance travelers after EPRA increased fuel prices.
As part of the efforts to protect operators, matatu bosses announced that long-distance rates will increase nationwide hours after the Energy and Petroleum Regulatory Authority (EPRA) raised gasoline costs.
Speaking to the media, Branden Marshall, a representative of the Association of Matatu Operators (AMO), said that this would have an impact on travelers leaving the Central Business District (CBD) for the Western area, the Coast, among other destinations.
He also said that prices for matatus using the CBD would rise at off-peak times.
“For instance, if during peak hours the fare is Ksh100 and off-peak hours it is Ksh50. The prices will now remain constant at Ksh100 throughout the entire day,” he pointed out.
He affirmed that the move would cushion the investors and stakeholders owing to the increase in fuel prices that has a ripple effect on the economy.
“There’s no unity in the matatu industry so we need to maintain the peak and off-peak hours prices to curb some Saccos from offering different prices other than the standard,” he added.
He noted that the matatu sector bore the brunt, emphasizing that they had to deal with targets, payment of premium insurance, paying of employees as well as servicing loans at the end of the month.
“In one route, you find that we have more than ten Saccos, and they all have set targets. So, this primarily leads to some overloading and carrying excess passengers to raise the amount needed.
“So, if a matatu covering ten trips consumes Ksh4,500 of fuel and right now it consumes Ksh5,000, to cover the same trips, they end up making losses,” he explained.
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Proposing a solution to the situation, he noted that the government ought to create a conducive environment for business people by creating a win-win situation for all parties involved.
He pointed out that a meeting involving all stakeholders would also assist in addressing the issues faced within the transport industry.
On the other hand, Matatu Owners Association (MOA) of Kenya boss Simon Kimutai also opined that the government needs to subsidize fuel in a bid to cushion the market from the ravaging effects.
“The government should consider restoring the subsidies as this affects Kenyans who go to their day-to-day activities to grow the economy,” he said.
The announcement comes after on Sunday, May 14, EPRA increased the prices of Super Petrol, Diesel, and Kerosene by Ksh3.40 per litre, Ksh6.40 per litre, and Ksh15.19 per litre respectively.
In Nairobi, this translated to Ksh182.70 for petrol, Ksh168.40 for Diesel and Kerosene rose to Ksh161.13.
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