Matatu Operators Suspend Operations Over Fuel Hike

A section of matatu operators in Machakos County have suspended operations citing losses occasioned by the high cost of fuel, with other hiking fares amid the high cost of living.

Passengers commuting from Nairobi to Machakos are now paying 350 shillings an increase from 200 shillings, with those heading to Kitui from Machakos paying 400 shillings from 300 shillings. Similarly, bus fares from Machakos town to Wote have increased by 100 shillings to hit 350 shillings.

“Before the fuel hike, I used to spend 3, 000 shillings on each trip between Machakos and Kitui towns, meaning 6, 000 shillings two way, at the stage we were given 3, 900 shillings. So, from Machakos and Kitui and back we used to get 7, 200 shillings of which 6, 000 shillings was spent on fuel alone,” a matatu operator said while addressing the press at Machakos Bus Park in Machakos County on Thursday.

The operators noted that some school children were stranded in the bus stations since they had less money for their transport back home from school. The operators now want the government to intervene and reduce the cost of the commodity which has been on a rising spree since march.

The price increase is primarily attributed to the increase in the average landed cost of refined imported petroleum products, and is in line with the new government’s policy to progressively remove the subsidy on petroleum fuels.

According to President William Ruto, the fuel subsidies have taken up to 144 billion shillings of taxpayers’ funds including the 60 billion shillings owed to the oil marketers as of August 2022, and thus must be ended.

The subsidy withdrawal has seen a liter of petrol jump to 179.30 shillings and 176 shillings in Nairobi and Mombasa respectively, an increase of 20 shillings per liter from the last review on August 14 when the commodity cost 159.12 shillings.

Meanwhile, a liter of diesel is now retailing at 165 shillings from 140 shillings, while a liter of kerosene is retailing at 147. 94 shillings up from 127.94 in August 2022 in Nairobi. Fuel subsidies have been partially retained for diesel and kerosene at 20.82 and 26.25 shillings respectively, according to the Energy and Petroleum Regulatory Authority (EPRA).

The prices include the 8 percent Value Added tax in line with the Finance Act 2018, the Tax Laws (Amendment) Act 2020, and the revised rates for excise duty for inflation as per Legal Notice No.194 of 2020.

The latest price hike is the largest since the implementation of the fuel subsidy program in the March 15-April 14 pricing cycle in 2021. The pressure will hit Kenyans who are already struggling with the inflated cost of living as manufacturers and transporters pass the surging fuel cost to consumers.

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