Matatu Fares Increase By Up To Ksh30 After Doubling Of VAT

Public Service Vehicles (PSV) commonly known as matatus will increase fares by up to Ksh30 from Wednesday, July 5, 2023.

The increase was announced by the Matatu Owners Association (MOA) chairman Albert Karakacha, who said it was necessary to protect the organization’s members who have invested heavily in the sector following the doubling of Value Added Tax (VAT) from 8% to 16%.

“The sharp increase in fuel costs, combined with other operational expenses, such as an increase in the cost of spare parts and loan interest, among others, has forced us to reevaluate our pricing structure to ensure the continued sustainability of prices,” Karakacha said.

The MOA announced that the rates in Nairobi will rise by Ksh10 to 30, Ksh10 to 50 in Metropolis cities, Ksh30 to 70 in coastal regions, and Ksh20 for Nyanza and Rift Valley town services.

Long-distance travel prices will rise from Ksh100 to Ksh200.

The increase in matatu fares is likely to add to the financial burden of Kenyans, who are already struggling with the rising cost of living.

The government has been urged to intervene and help matatu operators find ways to reduce their costs so that they can avoid passing the burden on to passengers.

Despite the tough measures, the MOA has asked the public to be patient as they seek alternative solutions to avoid having to go deeper into their pockets.