Matatu Owners Association (MOA) has announced a 30% fare increase for five major routes in Nairobi, aligning with the recent fuel price adjustment by the Energy and Petroleum Regulatory Authority (EPRA). Commuters will now have to pay higher fares on these routes to accommodate the increased operational costs faced by transport investors.
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The Matatu Owners Association (MOA) has taken the decision to revise fares upward by 30% on five key routes in Nairobi. This adjustment comes in response to the recent fuel price hike announced by the Energy and Petroleum Regulatory Authority (EPRA) on June 30.
According to Albert Karakacha, Chairman of MOA, the fare increase aims to protect transport sector investors from incurring significant losses due to the rising fuel prices. The revised fares will affect commuters traveling on routes such as Rongai, Jogoo Road, Thika Road, Waiyaki Way, and Kitengela Town along Mombasa Road.
Residents of Rongai, for instance, will now have to pay an additional Ksh30, as fares on the route have increased from Ksh100 to Ksh130. However, during off-peak hours, commuters will be charged approximately Ksh90 instead.
Passengers traveling along Jogoo Road in the eastern parts of Nairobi will also face increased fares, with prices rising from Ksh80 to around Ksh110. Off-peak journeys will cost them Ksh60, compared to the usual range of Ksh40 to Ksh50.
Thika Road users will experience a similar fare increase, paying Ksh130 for a one-way trip to the Nairobi Central Business District (CBD), matching their Rongai counterparts. During off-peak hours, the fare will be Ksh90. The same fare adjustments apply to commuters along Waiyaki Way, including residents of Kikuyu, Regen, Kinoo, Muthiga, and Uthiru.
Passengers traveling from Kitengela Town along Mombasa Road will be charged Ksh130 during peak hours and Ksh70 during off-peak periods.
The fare increases were prompted by the EPRA's review of fuel prices, which were influenced by the doubling of the Value Added Tax (VAT) from 8% to 16% as per the Finance Act, 2023. Currently, petrol in Nairobi is priced at Ksh195.53 per litre, while diesel and kerosene cost Ksh179.67 and Ksh173.44 per litre, respectively.
Despite a temporary injunction issued by the High Court to halt the implementation of the Finance Act 2023, the EPRA proceeded with the new fuel prices, stating that they had factored in the 16% VAT.
Commuters on these routes will now have to adjust their budgets to accommodate the increased fare prices, which are a direct result of the rising fuel costs.