Fare remain high even after VAT slash

Motorists drive along the Red line along Thika superhighway near Garden City,Nairobi. [Elvis Ogina.Standard]

Matatu operators in Western Kenya continue to charge increased fare despite a drop in fuel price by Sh9.

For instance, commuters traveling to Kisumu from Kakamega town are being forced to pay Sh300 one way fare.

Isaac Okoth told The Standard that a conductor forced him to pay Sh250 after he could not raise Sh300 fare from Kisumu to Kakamega.

"I was lured into the waiting Matatu by the same conductor who assured me the fare had dropped to the usual Sh200 only for him to change tune and start demanding more after the vehicle left the stage," he said.

“The conductor wanted Sh300 which I refused to pay and after a long verbal altercation gave him Sh250. It is unfair to exploit your customer on stipulations that they are less informed,” said Mr. Okoth.

Linda Neli, who was traveling to Nairobi from Kakamega said she had to part with Sh1200 up from the previous Sh1000.

“When traveling normaly you can pay up to Sh1600, and that’s extravagant,” said Ms Neli.

A driver who sought anonymity told The Standard that they had to cater for fuel prices and to do so, increment of fares was inevitable.

“The government imposing taxes hampers every drivers’ budget; do you think it is fair to bear all the burden alone?” he posed.

He added, “Simple economics posit that to cut costs, one must spread their expenses over their sales.”

A spot check by The Standard in town indicated that prices of fuel had shifted from Sh129.70 to Sh118.30 (petrol) and Sh117.20 to Sh109.80 (diesel) at National Oil and from Sh127.26 to Sh118.32 (petrol) and Sh117.36 to Sh109.87 (diesel) at Kenol Petrol Station.

“The 8 per cent VAT affects the sales we make per day because while the tax is expressed on the buy, their fuel budgeting amounts remain constant thus they buy less,” noted Nicholus Muthambi, a worker at Kenol petrol Station.

He asserted that increment of fares was an inescapable misfortune dictated by the rules of business.