Matatu Commuters could be approaching tough times as owners of public service vehicles are just about to increase their charges from next month.
According to Matatu Owners Association (MOA) chairman Simon Kimutai, they will increase the fares charged on passengers immediately the government implements the 16 per cent tax levy on petroleum products.
He further continued saying that this will mean passengers across the country will have to dig deep into their pockets as the taxation will greatly affect public service operators.
In Nairobi, Mr Kimutai said, fares will increase by between Sh10 and Sh30, depending on the route and distance involved.
During the budget reading, Treasury Cabinet Secretary Henry Rotich, announced that petroleum products will start attracting 16 per cent VAT beginning September 1, a move that will add about Sh17 on every litre of the commodity.
Just Last week, Treasury Principal Secretary Kamau Thugge confirmed the same, saying petroleum products will begin attracting the tax on September 1 in line with Kenya’s promise to the International Monetary Fund two years ago.
According to Kimtai, “The cost is always incurred by anyone who is seeking a service and so the fare increment will be countrywide. The moment the pump prices go up, we will adjust our fares as the levy on fuel translates to an added cost to matatu operators.”
The new tariff will result in increase in petrol prices to Sh130 per litre in Nairobi, diesel, which is used by most vehicles, will jump from an average of Sh103. 27 per litre to Sh119.77
In November last year, after the fuel rose by Ksh 3 the association opposed calls to reduce fares in Nairobi saying the fuel price hike would squeeze the earnings of operators.
To further complicate matters for commuters in Nairobi, the fare increment comes at a time when City Hall is cracking down on matatus flouting the two vehicles per Sacco directive.
This will mean that there will be limited number of vehicles in the central business district at any given time.
However, MOA is criticising the move, saying the county government should have done more assessment on ways to control traffic before settling on reducing the number of matatus.
The association said they were not consulted, adding that the move will adversely affect their businesses.
“It is very important that the county realises that without us, even getting revenue will be impossible and the best thing is to partner with us,” Mr Kimutai said.