Passengers and traders will have to pay more, say matatu owners

Luxury Shuttles, whose fleet of matatus ply the Meru-Nairobi route, assured passengers their fares will remain unchanged. [Phares Mutembei, Standard]

Players in the public transport sector and fuel traders are bracing for tough times ahead as the Finance Act, 2023 takes effect July 1.

Most of the public service vehicles (PSVs) and boda boda riders are expected to hike fares starting July 1 due an increment in fuel prices across the country. In some regions, fares were already up Friday, June 30, by between Sh150 and Sh200.

In Meru, with the exception of a few matatu Saccos, majority of PSV operators said they will be forced to hike fares to compensate for an increase in pump prices.

But Luxury Shuttles, whose fleet of matatus ply the Meru-Nairobi route, assured passengers their fares will remain unchanged.

Doris Kinyua from Luxury Shuttle said they will charge the usual Sh1,000 fares to Nairobi on their 14-seater and 10-seater matatus.

Ms Kinyua said the decision was informed by the fact that Kenyans are hurting due to the prevailing economic circumstances.

“We feel the pain of our clients because all of us are affected. We have been with our loyal clients for a long time so we have to understand the hard economic situation we are all going through,” she said.

“Just as you do not abandon your husband or wife when they are sick, we are not going to make it worse for our clients,” she added.

Meru Nissan Sacco, which owns fancy Airbus matatus plying the Meru-Nairobi route, however, plans to hike fares.

Abdulrahim Mutethia from the Sacco said those using their 10-seater matatu will pay Sh1,000 to Nairobi while those using their 14-seater cost vehicles will part with Sh800 one way.

“In business, you have to make a profit to remain afloat, otherwise you will close shop. We will need to increase fares to compensate for an increase in the cost of fuel,” said Mutethia but fell short of giving the exact new costs preferred.

The Energy and Petroleum Regulatory Authority was Friday, June 30, set to announce fuel prices following President William Ruto’s assent to the Finance Bill 2023, which increased fuel levy from 8 to 16 per cent to take effect July 1.

In Western, some PSV operators in Kakamega, Busia, Bungoma and Vihiga Counties said the new tax will automatically trigger an increase in fares.

Commuters traveling from Kakamega to Nairobi could pay more.  Currently, Guardian Angel charge Sh1,400 one way while Easy Coach currently charge Sh1,550.

“We will surely revise the fare upwards in order to remain afloat but that is the decision of the company’s top management,” said a staff of the Guardian Angel coach.

However, matatus plying different routes in the region has already increased fares.

Nelius Kombo, a passenger traveling from Kakamega to Bungoma, said that she paid Sh350 up from the normal Sh200.

“Before traveling to Bungoma, I went to visit a patient in Kisumu. Normal fare is normally Sh250 which I paid in the morning but on coming back fare had risen to Sh350,” said Ms Kombo.

A spot check by The Standard on Saturday showed fare from Kakamega to Eldoret has been increased from Sh400 to Sh550, Kakamega to Kitale from Sh400 to Sh600 and Kakamega to Busia from Sh300 to Sh400.

Samuel Mutisya, a driver plying the Kakamega- Eldoret route, said they will “be forced to carry excess passengers so that the extra money we shall use it to bribe the police on roadblocks and ensure we eat lunch on the way,”

Vivian Barasa, a matatu owner from Busia, said that she is just waiting for the start of the implementation of the new fuel levy and to see if she will continue being in business or convert her matatu into private use.

In Nyanza, matatu owners are set to increase fares starting July 1.

Motorists in Migori County said they would increase fares when fuel prices rise by 16 percent as earlier planned.

Nicholas Saitoti, who is a boda boda rider in the town, said they would increase Migori town service transport from Sh30 to Sh50.

Saitoti said he would buy at least 10 litres of fuel and stock it before the new pump price takes effect.

Isaiah Okumu, a matatu driver, said he has already bought fuel that will sustain him for at least one week.

Migori Matatu Operators’ Union chairman George Rarieda said several matatu owners plans to hike fuel prices from next week due to an increase in fuel price.

In Kisumu, locals have decried the fuel hike saying the move is going to cost the government big time.

They argue the plan to increase fuel prices was not well thought out and the government will have to leave with the consequences of the move.

Kisumu Matatu Association chair Evans Andala said the fare prices will go up by at least 10 percent where possible.

“This is a situation that affects all of us because movement from one point to another is a must. We are dealing with a situation that will affect the entire economy.”

Calvin Otieno, a boda boda rider in the region, said the hike in fuel prices is definitely going to affect his business.

He added that with the hard economic times, people may not agree to pay double the price they are accustomed to.

“I usually charge Sh50 for short distances and now I’ll be charging Sh80 in order to adjust to the hiked fuel prices,” he said.

Alice Atieno, a trader who operates a mini supermarket in Manyatta Estate, said going forward the profit margin in her business will decline.

In Kisii, Magati Jeremiah, a boda boda rider, said he will not have any other option but to increase fare, adding people are likely to opt to walking to work.

Operators of Public Service Vehicles (PSVs) in Kitale said Kenyans should expect fare hikes once EPRA the announcement.

Kevin Kasiti, the manager at North Rift Shuttle, said Kenyans should be ready to beat the transportation cost if pump prices are increased.

In Eldoret, Mark Bittok, a matatu owner said they are contemplating either venturing into alternative businesses or increasing fare to stay afloat.

[Reports by Nathan Ochunge, Phares Mutembei, Anne Atieno, Sharon Owino, Eric Abuga, Osinde Obare, Mercy Ereu and Edward Kosut]