Blow to hustlers as Matatu Bosses announce fare hike hours after RUTO increased fuel prices – Look at the new fares?

 Tuesday, May 16, 2023 – Hours after the Energy and Petroleum Regulatory Authority (EPRA) increased fuel prices, matatu bosses revealed that fares would go up for long-distance travellers across the country as part of the measures to cushion operators. 

According to Branden Marshall, an official of the Association of Matatu Operators (AMO), this would affect passengers travelling to the Western region, Coast among others from the Central Business District (CBD). 

He added that prices would be increased during off-peak hours for matatus accessing the CBD. 

“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.

Alluding to this, Marshall 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.

On the other hand, Matatu Owners Association (MOA) of Kenya boss Simon Kimutai also opined that the government needs to subsidise fuel in a bid to cushion the market from the ravaging effects.

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.