Matatu Operators Warn of Fare Hikes as Fuel Prices Rise

 

Matatu operators have warned that public transport fares could rise following a sharp increase in fuel prices, saying they can no longer absorb the growing cost of running their businesses.

The Matatu Owners Association said commuters and families would ultimately bear the burden of the latest increases, which took effect on October 15 and will remain in force until November 14, 2026.

Association president Albert Karakacha criticised the decision, accusing President William Ruto of breaking a promise to protect diesel prices during a meeting with transport sector stakeholders in Mombasa.

“He assured us that diesel, which is the backbone of public transport, would be protected from arbitrary increases. Today, diesel is up by Sh9.90 per litre. That promise has been broken. What are we supposed to tell our members?” Karakacha said.

Fuel Prices Rise Across Kenya

The Energy and Petroleum Regulatory Authority (EPRA) announced increases of Sh12.93 per litre for super petrol, Sh9.90 for diesel and Sh28.49 for kerosene.

In Nairobi, the maximum retail price for super petrol is now Sh226.96 per litre, while diesel costs Sh227.76 and kerosene Sh219.87.

In Mombasa, super petrol retails at Sh223.81 per litre, diesel at Sh224.61 and kerosene at Sh216.71.

Karakacha said diesel was particularly important to the transport industry, powering more than 90 per cent of matatus, buses and long-distance vehicles.

He warned that higher fuel costs would force operators to reconsider their fares and could also increase the cost of moving goods across the country.

“We are businessmen, we will pass it on to the consumer. We cannot be the ones cushioning the expenses while making losses,” he said.

Parents Face Higher Transport Costs

The price increases come as schools close, placing additional pressure on families that have already set aside money for travel.

Karakacha said some parents who had budgeted Sh5,000 for school transport could now need as much as Sh7,000. He cited families travelling from areas including Kitengela, Rongai, Thika and Mombasa.

“This increase has caught parents off-guard. It is unfair to students and parents,” he said.

The association president said transport operators were already facing higher maintenance expenses, insurance premiums and spare-part prices before the latest fuel adjustment.

According to Karakacha, a tyre that previously cost Sh25,000 now sells for between Sh38,000 and Sh45,000. Comprehensive insurance cover, he added, has risen from Sh180,000 to Sh250,000.

He said insurance premiums had increased by more than 30 per cent, adding to the financial pressure on vehicle owners.

Operators Demand Government Intervention

The association also accused the government of failing to implement measures it says were promised to ease the industry's costs, including tax relief on electric vehicles, batteries and charging infrastructure.

Karakacha argued that reducing the cost of switching to electric vehicles could help operators gradually reduce their dependence on petrol and diesel.

“We were told that duty on electric vehicles, batteries and charging infrastructure would be removed to encourage transition and reduce dependence on fossil fuels. Nothing has happened,” he said.

He warned that sustained increases in fuel and operating costs could discourage passengers from using public transport, weaken businesses and leave some vehicle owners struggling to repay bank loans.

The association has proposed reintroducing a fuel subsidy or establishing a stabilisation fund to shield operators and commuters from sharp price fluctuations.

It plans to hold an urgent meeting to determine its response to the latest increases.

“We are sorry to Kenyans, but we are also victims. We cannot absorb this increase,” Karakacha said.

The association's warning raises the prospect of higher commuting costs for households already managing tight budgets. However, the extent of any fare increases will depend on the decisions operators make following the fuel adjustment.

Editorial note: The fare increases remain a warning from the association, not a confirmed nationwide adjustment. The account of the President's alleged promise and the proposed tax relief is attributed to Karakacha; independent confirmation was not provided in the supplied report.