The Matatu Owners Association (MOA) has given Nairobians a heads-up on when they can expect to cough up more money for transport as matatu owners prepare to hike fares.
MOA Chairman Simon Kimutai said the hike will take effect this Saturday when the 16 per cent tax increase on petroleum products is expected to take effect.
He said the fares would go up by between Ksh10 and Ksh30. Kimutai affirmed that commuters in Nairobi would pay at least Sh30, with the maximum depending on the distance covered adding that the hike will not exceed an increase of Ksh30.
“Taxation of fuel greatly affects operators of public service vehicles and the cost has to be passed down to the passengers. We have to meet operational and maintenance costs,” said Kimutai.
The MOA chairman added that the decision was arrived at after consultations with members of various Saccos.
“The fares have been adjusted due to the high cost of living. We are aware it will be painful to commuters, but the taxation is also hurting us, as it translates to extra costs,” he said.
Kimutai further asked long-distance public service vehicles to consult and ensure their new fares are agreed upon with the association which will then announce the reasonable fares later.
Treasury Cabinet Secretary Henry Rotich while presenting the 2018/2019 Budget in Parliament in June announced all petroleum products would start attracting a 16 per cent VAT beginning September 1.
This translates to an extra Ksh17 on every litre of petroleum product.
UPDATE: MPs have voted to delay the introduction of 16 percent tax on petroleum products by two more years, effectively shielding Kenyans from a spike in the cost of living until September 1, 2020.