Matatu fares in Nairobi to increase by ksh 20  as 16% VAT on fuel takes effect

Matatu fares in Nairobi to increase by ksh 20 as 16% VAT on fuel takes effect

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BY NAMULONGO PETER,NAIROBI,3RD SEPT 2018-Commuters  using matatus that ply on  Nairobi routes will have to adjust their pockets in order to meet the new fares.

This is    after   Matatu saccos in Nairobi agreed to increase fares in Nairobi by Sh20 and 20% for long distances outside the city.

The move  follows Treasury Cabinet Secretary Henry Rotich ‘s decision to effect 16% VAT on petroleum products from September 1.

Speaking during the meeting  in Nairobi on Monday  Matatu Welfare Association Dickson Mbugua, said they will engage their members to ensure fares are not exaggerated.

“Touts should not be mischevious and raise fares beyond the recommended prices,” Mbugua said.

Chairman of the Association of Matatus in Nairobi Jamal Mohammed said saccos have adjusted fares.

“We cannot fight the government for increasing the price of fuel. We will raise fares for us to meet expenses,” Jamal said

Members of the Matatu Owners Association said they increased fares last week by between Sh10 and Sh30. However, they will adjust the amount to the agreed Sh20.

Leaders of at least 100 matatu saccos who were present at the meeting said they will not go to court to challenge the new fuel prices.

Some members had suggested that matatus hold strikes until the government reduces fuel prices.

This comes evens as public transport in Mombasa got paralyzed on Monday after the matatu operators downed their tools protesting the increased VAT on petroleum.

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