Matatu stage in Kenyas capital Nairobi

After the Matatu Owners Association confirmed an anticipated fee rise to take effect on Wednesday, July 5, in response to the sudden spike in fuel costs triggered by the Finance Act 2023, Kenyans are now facing challenging financial situations.



The Matatu Owners Association released a press release in which it stated that "the sharp hike in fuel costs, complemented with other operational expenditures, has necessitated us to take stock of the way we charge customers in order to ensure the long-term viability of prices."



This has increased the strain that Kenyans already bear due to the high cost of goods and services.



The Matatu Owners Association estimates that the increases in rates will range from KES 10 to 30 for operations in and around Nairobi, KES 10 to 50 for places in Metropolis, KES 30 to 70 for services in coastal regions, and KES 20 for services in Nyanza and the Rift Valley. The cost of long-distance travel will rise from KES 100 to KES 200.



Even though Justice Mugure Thande of the High Court handed an injunction on Friday, 30 blocking the Finance Act, 2023, the Energy and Petroleum Regulatory Authority (EPRA) on Saturday published new fuel pricing for July 2023.



The Finance Bill for 2023's recommendation to double the Value Added Tax (VAT) on gasoline from 8 percent to 16 percent forced EPRA to increase rates.



Despite a court injunction halting the Act's execution, a quick check reveals that fueling stations are still charging exorbitant rates.



Super petrol costs KES 195.53, diesel KES 179.67, and kerosene KES 173.44 a litre in Nairobi.



"We compel the government to lessen the cost for matatu operators and passengers by subsidizing fuel services for PSV operators," the proprietors of matatus added.



They also asked for the public's patience while they searched for alternatives to avoid having to dig even further into their wallets.



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