Millions of Kenyan commuters faced higher transport costs on Wednesday after matatu fares increased by up to 30 percent nationwide. The adjustment follows a fuel price review by the Energy and Petroleum Regulatory Authority (EPRA) that pushed diesel prices above the KSh 200 mark.
The fare increase, implemented by the Matatu Owners Association (MOA), comes amid a sharp rise in fuel costs during the latest monthly pricing cycle. According to EPRA, the retail price of Super Petrol rose by KSh 28.69 to KSh 206.97 per litre. Diesel, the primary fuel for public transport vehicles, increased by KSh 40.30 to KSh 206.84 per litre, while kerosene remained unchanged at KSh 152.78.
MOA Chairman Albert Karakacha said the increase in matatu fares was necessary to offset the rising cost of diesel. “The current fuel prices have significantly raised operational expenses, and operators are struggling to sustain services under these conditions,” he stated.
Transport operators reported that the daily running cost of a standard 33-seater matatu has increased by several thousand shillings per shift. In addition to higher fuel prices, some regions have experienced supply constraints, with long queues reported at filling stations. These disruptions have affected scheduling and reduced the number of trips vehicles can complete each day.
Economic analysts attribute the fuel price surge to instability in global energy markets, linked to ongoing geopolitical tensions in the Middle East. The rising international cost of petroleum imports has continued to influence domestic fuel pricing despite local interventions.
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The National Treasury recently reduced Value Added Tax (VAT) on petroleum products from 16 percent to 13 percent in an attempt to cushion consumers. However, the adjustment has had limited effect on overall pump prices due to the scale of the increase in global fuel costs.
The impact of higher matatu fares has been most evident in Nairobi’s satellite towns, including Ongata Rongai, Githurai, and Ruiru. Commuters traveling from these areas reported significant fare increases, particularly during peak hours, with some routes recording near doubling of charges.
Economists have warned that the increase in transport costs may contribute to broader inflationary pressures. As road transport remains the primary means of moving goods across the country, higher fuel and logistics expenses are likely to translate into increased prices for food and other essential commodities.
Stakeholders in the transport sector and consumer groups are expected to engage the government on potential measures to mitigate the impact. Proposals under discussion include targeted subsidies and further tax adjustments to stabilize fuel prices.
The next fuel price review by EPRA is scheduled for mid-May. Observers say the outcome will be critical in determining whether current price levels will persist or ease in the coming weeks.
