Matatu owners announces natiowide fare hike effective from July 1st
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Matatu Owners Association announces natiowide fare hike over increased fuel taxt effective from July 1st
Matatu Owners Association announces natiowide fare hike over increased fuel tax effective from July 1st.
On June 28, matatu operators declared that after the Finance Bill 2023 takes effect in July, they will be raising fare costs.
Albert Karakacha, chairman of the Matatu Owners Association, said during a meeting in Nakuru that the decision was made to ensure that their businesses generated profits in keeping with the increasing cost of living.
Karakacha also urged Kenyans to show patience with the drivers and conductors working throughout the nation, pointing out that they had no control over the situation.
“If you go to the supermarket after the prices of products have increased in the country, the prices of the products there will have also increased.
“There is no way we can continue running our business the same way yet the tax increase will also increase the prices of fuel across the country,” he stated.
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However, Karakacha warned matatu operators across the country against taking advantage of Kenyans by setting exaggerated fare prices to cushion their customers who are also facing other pressures of life.
“We are asking our members to check when increasing the prices so that they don’t overdo it and hurt our customers,” he added.
The announcement comes after President William Ruto on Monday, June 26, approved the implementation of the increase in fuel’s Value Added Tax (VAT) from 8 per cent to 16 per cent by signing the Finance Bill 2023 into law.
The additional 8 per cent, which is equivalent to Ksh14.592, will be added to the existing cost of petrol in price ratio settings, provided other factors of supply and demand remain constant.
The extra 8 per cent of VAT on petroleum products will have a significant effect, especially on fuel price per litre, national revenue and cost of essential household products.
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