The Taxpayers Association of Kenya has raised concerns over the fare hikes and profits in the country linked to the new EPRA fuel prices.
Citing the price increase by owners of electric buses, the association has argued that the change in fuel prices is now being exploited for the benefit of matatu owners.
Additionally, the association has called on the relevant associations involved in public transport and travel to regulate prices and monitor their margins to avoid exploiting Kenyans.
Speaking during an interview with Citizen TV, Patrick Nyangweso, the CEO of the National Taxpayers Association, said that matatu owners maintain a fair price range for the travelers.
Basing his calculation on the fare prices between Nakuru and Nairobi, Patrick noted that with the current price of diesel retailing at 196.63, from the previous 178, the increase in the prices is by 18.35, and the current fare means that matatu owners are making huge profits.
According to Patrick, the journey to and fro from Nairobi to Nakuru means that the vehicle is 320 kilometers, with the fuel spent being at the current prices, the 14-seater matatus are estimating a profit of three thousand six hundred and thirteen shillings.
“Now, in terms of revenue, this Matatu would be able to charge a fair increase per passenger, 300 shillings. Now, per trip, a 14-seater would cost you 4,200 Kenyan shillings, which means the extra fuel cost would be 587, and the actual cost they are currently making is very exorbitant. We are calling the Matatu owners’ association and other relevant associations, they will make extra revenue of three thousand six hundred and thirteen,” Patrick Nyangweso explained.
Also Read: 2 to 3 Days Matatu Owners Delay Fare Cuts Despite Fuel Price Drop
Despite the acknowledging the fuel price, the association has clearly stated that the matatu owners should increase the fare with consideration, despite the economic challenges facing Kenya.
Patrick reaffirmed that the taxpayer association would not support the matatu owners in exploiting Kenyans; instead, they requested that the operators be incentivized to adjust the fares, not beyond the recovery but within the margin.
Matatu Owners Association on Fare Hikes Raising Concerns with the Taxpayers Association
Concern from the National Taxpayers Association comes a day after the president of the Matatu Owners Association, Albert Karakacha, stated that the matatu owners required at least two to three days to lower the prices after a decrease in the Value Added Tax (VAT).
According to Karakacha, the price hike that followed the new fuel price announcement by the Energy and Petroleum Regulatory Authority (EPRA) could not be abruptly renewed.
Also Read: Matatus and Bus Operators to Be Fined Up to Ksh5 Million Under New Customer Data Handling Rules
Additionally, he affirmed that the new prices would remain in place as the association communicated with stakeholders in the transport sector regarding a possible fare reduction.
“Okay, we need to be given more time. You see, if you go all over, when the price goes up, we will still maintain that we are businessmen. We cannot just wake up and decide we have to bring the prices down. So maybe we are given two to three days, we will be able to communicate through media,” Albert Karakacha stated during an interview on April 15.
Karakacha also explained that fuel prices were not the only factor affecting travel costs; the cost of spare parts and the current cost of vehicle purchases also contributed to the price hikes.
