The Kenya Transport Association has, consequently, asked its members to transfer the higher cost to the consumer so that their profit margins are not significantly affected.
“Fuel costs contribute up to 35 per cent of total direct transport costs and indirectly affects other costs such as tyre and spare parts importation,” said the association’s chairperson Netwon Wang’oo.
“Transport rates have remained constant from the period when the diesel pump prices in Mombasa were between Sh75 and Sh80 per litre, compared to the current Sh108-Sh110 per litre. Transporters margins can no longer sustain any increase in costs, and regrettably have to pass this increase to the cargo owners for the road transport sector to survive,” he said.
Describing the Sh5 increase on fuel prices as having “adverse” effects on transportation costs, Wang’oo directed that its members countrywide should increase cargo transportation charges.
“KTA wishes to advise transporters countywide to increase their transport rates by a minimum of 5 per cent to sustain their businesses under the current circumstances and to circumvent a total collapse of their businesses,” said the KTA chairperson.
The association says on its website that it advocates for transport policies that increase investment in freight transport business and improve profitability of the trucking industry.
It costs between Sh80,000 and Sh100,000 to transport a 20ft container using trucks between Mombasa and Nairobi. A 5 per cent increase in the charge would mean that transporting the same 20ft container between the two cities by road would cost between Sh84,000 and Sh105,000.