NAIROBI, Kenya Apr 20 – The National Taxpayers Association has raised concern over rising public transport fares, warning that some operators may be exploiting recent fuel price increases to impose unjustified charges on commuters.
Chief Executive Officer Peter Nyangweso said the fare adjustments witnessed in parts of the country, including among operators of electric buses in Nairobi, do not reflect the actual impact of the latest fuel cost changes.
“We are seeing a trend where transport providers are increasing fares beyond what is reasonable. We are calling on sector associations to review their pricing structures and ensure they do not exploit Kenyans,” Nyangweso said.
He illustrated the disparity using a typical 14-seater diesel matatu operating between Nairobi and Nakuru a route covering approximately 160 kilometres one way.
According to his analysis, with diesel prices rising from about KSh178 to KSh196.63 per litre an increase of roughly KSh18 the additional fuel cost per round trip of 320 kilometres would be about KSh587, assuming an average fuel consumption of 10 kilometres per litre.
However, Nyangweso argued that some operators have raised fares by as much as KSh300 per passenger, generating up to KSh4,200 per trip for a fully occupied 14-seater vehicle far exceeding the incremental fuel cost.
“This creates a scenario where operators are making significantly higher returns under the guise of fuel price adjustments. That is not justified,” he said.
He urged matatu associations and other transport sector stakeholders to ensure fare increments remain within reasonable margins tied strictly to operational costs, warning against what he described as daylight robbery of commuters.
While acknowledging the broader economic strain caused by rising fuel prices, Nyangweso maintained that the direct cost impact on diesel-powered public service vehicles remains relatively modest when properly calculated.
He also called on policymakers to explore measures to cushion households, including encouraging flexible work arrangements such as remote working to reduce daily commuting expenses.
“Many Kenyans are now spending upwards of KSh300 a day on transport, translating to over KSh6,000 monthly an unplanned burden for most households,” he noted.
At the same time, he urged government and industry regulators to initiate dialogue aimed at stabilising pricing across supply chains, warning that unchecked transport costs could disrupt local markets and drive up the cost of goods.
Commuters have been bracing for higher transport costs after the Matatu Owners Association announced a hike in bus fares starting today, April 15.
Association chairman Albert Karakacha on Tuesday said the operators will now increase the fare by 25 per cent, a decision that follows the latest increase in super petrol and diesel prices announced by the Energy and Petroleum Regulatory Authority.
We have consulted widely with our members and we have agreed to increase the fare by 25% because if you check in Nairobi the vehicle gives you around Sh8,000 per day now if you look at the Sh40 fuel price increase is going to take away about Sh2,400 per vehicle per day,” Karakacha said.
“We are urging our customers, the members of public that it is not our wish to go that direction, we are in business you have to bear with us and we are urging the government to try to work on the subsidy to cushion the business and customers.”
The Kenya Transporters Association (KTA) has also announced a significant increase in operating expenses following a steep jump in diesel prices.
KTA chairman Newton Wang’oo warned that the spike will have a direct impact on the cost of transport across the country, noting that fuel accounts for the largest share of operating expenses in the sector.
“Fuel constitutes approximately 55 per cent of total operating costs in road freight transport,” the advisory stated.
Using its cost impact formula, the association estimates that the fuel hike will translate into a 13 to 14 per cent increase in overall transport operating costs.
KTA said such a substantial rise cannot be absorbed by operators, urging members to immediately review their cost structures and adjust transport rates to reflect the new reality.
“Members are advised that such a substantial rise in input costs cannot be absorbed sustainably,” the statement read.
