Nairobian’s To Pay 30 Shillings More As Fare From September

As the month of September fast approaches, Kenyans are a worried lot as everything seems to be conspiring against their already squeezed pockets.

Days after the government announced that the implementation of 16 percent Value Added Tax (vat) will officially take effect from 1^st of September, matatu owners are up in arms, with their guns pointed at the common mwananchi.

Beginning September, residents in Nairobi will have to dig deeper into their pockets to pay for their fare as it is set to rise by up to 30 shillings.

The announcement comes after the Treasury indicated the seriousness to increase the price of petrol to a record high of 130.15 shillings per liter, a 17.9 shillings more than the current price.

Matatu owners now say that those traveling to and from Nairobi will have to part with between 10 to 30 shillings depending on the distance.

Diesel is also set to increase to 119.77 shillings per liter. Diesel is used to power commercial vehicles as well as in power generators for power and industries.

Impact of increasing fuel prices

The increase in fuel prices is going to negatively impact on Kenya’s economy as it is set to cut across the whole value chain.

Already, public transport sector has announced the hike in fare beginning September, meaning Kenyans are going to pay through the nose to travel.

The manufacturing sector is going to be hit hard. Most industries depend on diesel-powered generators to run their activities. This means the cost of production is going to increase and this will, in turn, increase the prices of basic commodities.

The inflation rate is automatically set to rise given the fact that fuel is one of the products that determine the same. With the price of foodstuffs set to rise too, inflation is going to bite hard.

Investors are also set to withdraw from the country and those planning to set up industries either move to other countries or close shop all the same.