Matatu operators on Wednesday, June 28, announced that they will be increasing fare prices in July after the Finance Bill 2023 takes effect.
Speaking during a meeting in Nakuru, the Matatu Owners Association Chairman Albert Karakacha stated that the move was to ensure that their businesses made a profit in line with the high cost of living.
Additionally, Karakacha asked Kenyans to remain patient with the drivers and conductors across the country noting that the matter was beyond their control.
“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.
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 move came after an appeal from Azimio leader Raila Odinga to the operators to oppose the increased levy by doubling their carrying capacity while on the roads instead of increasing charges.
In response, the operators stated that the only way the opposition leader could help Kenyans was by agitating for the lowering of insurance premiums and taxes levied on vehicle spare parts.
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.
