City matatu fares to increase by Sh30 if fuel levy takes effect
Matatu operators have confirmed that fares will increase by at least Sh30 from September 1, when the 16 per cent fuel levy comes into effect after they failed to strike a deal with the government.
In June, Treasury Cabinet Secretary Henry Rotich announced that petroleum products would start attracting 16 per cent VAT from September 1, adding Sh17 to every litre of petrol.
Matatu Owners Association chairman Simon Kimutai said that the confirmation follows a resolution reached by different stakeholders in the sector on Tuesday after a meeting in Nairobi where the different saccos agreed on the range within which to adjust the fare.
Mr Kimutai said that the Sh30 rise would adversely affect commuters within Nairobi, but stated that matatu saccos operating outside the city would consult among themselves to come up with a reasonable amount of fare increment, which would be announced at a later date.
“We are aware that the fare increase will be painful for the commuters, but it has to take effect because the taxation of fuel translates into an added cost for operators,” Mr Kimutai said in Nairobi on Tuesday.