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Why economy is becoming unbearable for Kenyans

Hike in the cost of fuel will lead to high production costs.

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by The Star

News15 September 2023 - 13:05
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In Summary


  • Transport woes are set to intensify following the hike of fares by the Matatu Owners Association.
  • MOA chairperson Albert Karakacha on Friday announced a hike of 20 percent as a result of the increase in fuel prices that takes effect immediately.
Matatus at a bus stage

The economic hardships facing Kenyans have mounted following the hike in fuel prices announced by the government on Thursday evening.

The hike in the cost of fuel will lead to high production costs and hence food commodities.

The cost of foodstuffs such as cooking oil, sugar, and maize flour has been rising in the recent past.

For instance, a two-kilogram of sugar is retailing at almost Sh 500.

That aside, transport woes are set to intensify following the hike of fares by the Matatu Owners Association.

MOA chairperson Albert Karakacha on Friday announced a hike of 20 percent as a result of the increase in fuel prices that takes effect immediately.

“We have been consulting them about the increase of fuel and we have come up with a way that immediately they need to increase the fare,” Karakacha said.

The chair said the association will still be in consultation with the government to help the common person as they are suffering.

“When the fuel goes up, we will have to pass it to the common mwananchi,” Karakacha said.

Karakacha said the state has cited inflation while hiking the fuel price.

“We will have to increase the cost of our products so that we do not lose business,” Karakacha said.

He said operating the sector is costly. Karakacha said they have not been consulted by the Energy and Petroleum Regulatory Authority (EPRA) every time they hike the fuel prices.

“Going forward, we are going to see how to engage them because the common mwanainchi is suffering,” Karakacha said.

The chair said they are collecting Sh15,000 in a fourteen-seater matatu in a day. He added that when Sh4,000 which is gross profit is removed, the owner remains without anything.

The chair said initially they used to spend Sh9,000 but they now spend Sh11,000 while the 33-seater spent about Sh14,000 to have the tank full but right now it has gone up to Sh16,000.

The total collection of the 33-seater vehicle is around Sh22,000. Karakacha said there is wear and tear and insurance payments on a daily basis.

“We are not in business as we talk,” he said.

MOA CEO Patricia Mutheu said there is a need to have a national talk on how the sector can be supported.

In the new review by EPRA, prices of super petrol and diesel are now retailing at over Sh200.

The price of petrol has gone up by Sh16.96 per litre while diesel has increased by about Sh21.32 per litre.

Kerosene increases by Sh33.13 per litre. "The changes run from September 15 to October 14, 2023," EPRA said in a statement.

The prices vary from town to town and Mandera is leading in petrol retail at Sh225.64 per litre.

The town will also cost the most expensive diesel at Sh214.99 per litre as compared to other major towns.

For Kerosene, Mandera people will purchase at Sh216.61 per litre. Eldas town in Wajir County comes second with the highest amount of petrol and diesel.

To purchase petrol in the town, residents will cough Sh223.50 for petrol and Sh212.84 for diesel, as for Kerosene, it will retail at Sh214.45 per litre.

For Wajir town, residents using Kerosene will be required to pay Sh212.55.

Motorists will purchase petrol and diesel at Sh221.59 and ShSh210.93 per litre respectively.

In Elwak, Mandera County, Kerosene will cost Sh214.10 as petrol and diesel will retail at Sh223.15 and Sh212.49 per litre respectively.

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