Stakeholders in the public transport industry have announced an increase in fares by five percent following the recent hike in fuel price.
Newton Wangoo, the Kenya Transport Association Chairman acknowledged that the plans to increase fares by the matatu operators are justified given the hike in fuel prices.
“KTA wishes to advise transporters countrywide to increase their transport rates by a minimum of 5% to sustain their businesses under the current circumstances and to circumvent a total collapse of their businesses,” said Wangoo.
According to KTA, fuel costs contribute up to 35 percent of total direct transport costs and indirectly affects other costs including tyres and spare parts since they are all imported.
Public Service Vehicles (PSV) fares have remained constant from the period when a litre per diesel retailed at Ksh.80. This, Wangoo said the sector cannot continue reeling to the fuel hike bite.
“Transport margins can no longer sustain any increase in costs and regrettably have to pass on this increase to the cargo owners for the road transport sector service.”
KTA announcement comes on the back latest review by the Energy and Petroleum Regulatory Authority (EPRA) which chose to top up Ksh.5 on the previous pump price, increasing a litre of petrol to Ksh.134.72.
Motorists using Diesel will also pay Ksh.5 more to Ksh.115.60 per litre. This even as Kerosene users have been spared from the price hike.
