Matatu saccos have agreed to increase fares in Nairobi by Sh20 and 20% for long distances outside the city.
This follows Treasury Cabinet Secretary Henry Rotich 's decision to effect 16% VAT on petroleum products from September 1.
During a meeting in Nairobi on Monday, leaders of at least 100 matatu saccos said they will not go to court to challenge the new fuel prices.
Some members had suggested that matatus hold strikes until the government reduces fuel prices.
Matatu Welfare Association Dickson Mbugua, who chaired the meeting, said they will engage their members to ensure fares are not exaggerated.
"Touts should not be mischevious and raise fares beyond the recommended prices," Mbugua said.
Chairman of the Association of Matatus in Nairobi Jamal Mohammed said saccos have adjusted fares.
"We cannot fight the government for increasing the price of fuel. We will raise fares for us to meet expenses," Jamal said
Members of the Matatu Owners Association said they increased fares last week by between Sh10 and Sh30. However, they will adjust the amount to the agreed Sh20.
A spot check by the Star on Monday morning revealed matatus had increased fare by Sh10 on Buruburu's route 58.
However, Embassava, Metro and City Shuttle charged normal fares. They told the Star they were waiting for direction from their saccos.