Transport
PSVs increase fares 30pc after doubling of fuel VAT
Tuesday July 04 2023
Vehicles line up to fuel up at a petrol station within Nairobi on July 1, 2023. PHOTO | FRANCIS NDERITU | NMG
Commuters will pay up to 30 percent more to travel countrywide after transport firms increased fares in response to the doubling of the value-added tax (VAT) on petroleum products to 16 percent.
An analysis of the new price guide shows that public service vehicle (PSV) operators plying Western Kenya routes will charge the highest in fare in the latest review by Matatu Owners Association (MOA).
Read: Double blow to motorists as Epra ignores levy cuts
The MOA says passengers from the city into Western towns such as Kakamega, Bungoma, Busia, Vihiga, Mumias will now pay between Sh200-300 more to travel into the city.
Currently, passengers heading to Western Kenya from the city pay about Sh1,500 on average.
On their part, passengers from the Nyanza counties of Homa Bay, Migori and Kisii will now pay between Sh100-Sh200 more to Nairobi, according to MOA’s price review.
Passengers from Mount Kenya will pay Sh150 more into the city.
“Effective July 5, 2023, passengers can expect a moderate increase of between 10-20 percent of the current fares charged across the various routes, including town service and long-distance travels,” the lobby’s chairman Albert Karakacha said on Tuesday.
While announcing the fare hikes which take effect today, the MOA said the review will affect all PSVs operating in the city as well as across the counties.
The change in fare price comes barely a few days after the Energy and Petroleum Regulatory Authority (Epra) increased pump prices despite a court order suspending the Finance Act, of 2023.
Effective July 1, fuel prices jumped upwards with petrol increasing by Sh13.49 per litre, diesel by Sh12.39 per litre and kerosene by Sh11.96.
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In Nairobi, a litre of Super petrol is retailing at Sh195.53 while that of diesel has jumped to Sh179.67 — the highest since Kenya started capping pump prices. Passengers from Kajiado, Machakos, Murang’a, and Kiambu will part with between Sh20-50 more to Nairobi.
