Commuters squeezed as matatus hike fares by 25pc

Public transport users across Kenya are bracing for a difficult period as the Matatu Owners Association (MOA) confirmed a 25 percent increase in fares. The decision, announced by the association’s leadership, follows the latest review of fuel prices by the Energy and Petroleum Regulatory Authority (EPRA).

The price of petrol, diesel, and kerosene hit record highs this week, forcing transport operators to pass the additional costs to the public. In Nairobi and other major towns, the 25 percent adjustment will apply to both short-distance and long-distance routes.

Albert Karakacha, the chairman of the Matatu Owners Association, stated that the industry could no longer absorb the rising cost of fuel. He noted that while operators are mindful of the economic pressure on Kenyans, the survival of the transport business depends on these new rates.

The matatu sector is a critical pillar of Kenya's infrastructure and economy, moving millions of people daily. However, it remains highly sensitive to fluctuations in global oil prices and local taxation policies.

Commuters who spoke to reporters expressed frustration, noting that the increase comes at a time when the cost of living is already at an all-time high. Many workers in the city spend a significant portion of their income on transport, and a 25 percent jump will force further budget cuts on essential items like food.

This development follows a trend where fuel price hikes have a direct domino effect on the construction and logistics sectors. Increased transport costs lead to higher prices for building materials, as the cost of hauling cement, sand, and steel from suppliers to sites increases.

President Ruto has previously acknowledged the global pressure on fuel supplies but maintained that the removal of subsidies was necessary for long-term fiscal stability. The government continues to face pressure to find a balance between revenue collection and protecting the public from inflation.

The Matatu Owners Association has urged the government to consider tax interventions on petroleum products to prevent further hikes. For now, commuters will have to adjust their daily budgets as the new fares take effect immediately across various routes.

The association also called on its members to implement the changes fairly, though many passengers fear that some operators might use the announcement to overcharge beyond the recommended 25 percent. This move marks one of the steepest single-day fare adjustments in recent years.