What You Need to Know
The Taxpayers Association of Kenya has issued a warning to matatu operators regarding significant fare increases that exceed justified limits following recent fuel price hikes. They argue that while fare adjustments are necessary during fuel shocks, operators should not exploit the situation for excessive profits, impacting commuters already facing high living costs.
Africa-Press – Kenya. Matatu operators have been put on notice for hiking fares far beyond what is justified by the latest fuel price review.
Speaking to the media on Monday, April 20, the Taxpayers Association of Kenya warned PSV operators against hiking prices, noting that their actions have affected the general public.
The Association said the direct impact of the fuel hike on operating costs for a typical 14-seater matatu is modest compared to the sharp fare increments now being charged on several routes.
“This is uncalled for, and we should not continue to really rob Kenyans broad daylight. So we are calling all the associations to observe this despite the economic challenges that come with the fuel shocks,” they stated in a statement.
Using the Nairobi-Nakuru route as an example, the association broke down the numbers to illustrate what it termed exorbitant profit-taking under the guise of fuel shocks.
According to the calculation, a 14-seater diesel matatu covering the 160-kilometre trip between Nairobi and Nakuru consumes about 32 litres of diesel for a round trip of 320 kilometres, assuming an average fuel efficiency of 10 kilometres per litre.
With diesel prices rising by KSh 18.35 per litre from KSh 178 to KSh 196.63, the additional fuel cost per round trip comes to approximately KSh 587.
However, the association noted that some operators have increased fares by up to Ksh 300 per passenger on the route. With a full capacity of 14 passengers, this translates to an additional Ksh 4,200 in revenue per trip, far exceeding the extra fuel expense.
“if you do your mathematics rightly, Matatus are making exorbitant profits and this is we don’t think as a taxpayer association we want to encourage this,” they added.
Their concern comes after matatu operators increased fares by over 25 per cent following the Energy and Petroleum Regulatory Authority (EPRA) raising diesel prices by over Ksh 40. But later, the authority revised the prices after VAT on fuel was reduced from 13 per cent to 8 per cent, but the operators did not reduce their prices.
The lobby argued that while operators are justified in adjusting fares during fuel shocks, the increases should be proportional to the real increase in operational costs, rather than used as an opportunity to profit at the expense of commuters already grappling with a high cost of living.
At the same time, the association questioned why electric bus operators have increased fares despite not being directly affected by changes in diesel prices.
The group further challenged matatu saccos to publicly justify recent fare hikes using fuel cost data, warning that failure to self-regulate could invite regulatory action.
“Operators should adjust fares upward only within the recovery margin, not beyond it,” the association said.
In Kenya, matatus are a vital part of public transport, providing affordable mobility for many citizens. However, fare hikes often occur in response to fluctuations in fuel prices, leading to public outcry when increases seem disproportionate. The Taxpayers Association’s recent intervention highlights ongoing tensions between operational costs and fare pricing, emphasizing the need for fair practices in the transport sector. This situation reflects broader economic challenges faced by Kenyans, particularly in light of rising living costs and the impact of fuel price adjustments on daily expenses.
