Matatu operators have asked commuters to brace themselves for higher fares from September 1 as a
result of the introduction of 16 percent VAT on fuel.
The changes come in the wake of Treasury's move to implement the International Monetary Fund (IMF) financial assistance programme. This followed a
review of the performance of its Sh150 billion forex insurance programme with Kenya.
Speaking on KTN on Tuesday, Matatu Owners Association chairman Simon Kimutai noted the "common sense" of passing new costs to consumers.
“Common sense in any business [means] that costs that come in are passed on to consumers,” Kimutai said, but noted that they will be fair in the adjustments.
“Immediately after pump prices are adjusted, we will adjust the fares."
The cost of fuel will increase by about Sh15 to Sh17 per litre and see petrol retail at about Sh130 per litre.
The Energy Regulatory Commission is expected to announce the new fuel prices today.
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Kimutai noted that PSVs in Nairobi consume an average of 50 litres per day, a circumstance that makes it necessary for them to take steps to sustain themselves.
The impact will be felt across the country, he said, adding the costs
will vary with distances.
“There won’t be any discrimination in the application of the VAT. Any person who uses a vehicle powered by fuel will have to bear the cost. The hike cannot be avoided since the cost of doing business will go up," he said.
“It’s just business. We are sorry [for consumers[ but they should not look at us. They should look at the government.”
Kimutai said they deemed it necessary to prepare commuters as the government prepared them.
On Monday, EERC Chief Executive Officer Pavel Oimeke noted that the prices of fuel are determined by the National Treasury, not the commission.
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