Price of a litre of diesel was slashed by Sh5 in the latest price update by EPRA Commuters will continue to pay higher fares despite a Sh5 reduction in the price of diesel - mostly used by Public Service Vehicles - with operators ruling out any immediate reduction.
The decision is likely to prolong pressure on household budgets and keep transport costs elevated across the economy, with cargo transporters, farmers and manufacturers also yet to signal any significant reduction in their charges following the latest fuel price adjustment.
The Energy and Petroleum Regulatory Authority (EPRA) last week reduced the price of diesel by Sh5 per litre to Sh217.86 in Nairobi for the period ending September 14. Petrol remained at Sh214.03 per litre and kerosene at Sh191.38. A spot check by the Star yesterday showed that most matatu routes in Nairobi have retained fares that are between Sh20 and Sh30 higher than levels prevailing before the sharp fuel price increases earlier this year.
Most fares on key routes average between Sh100 and Sh150, up from Sh70 to Sh130. The Matatu Owners Association (MOA) however dismissed the latest diesel reduction as too small to justify a fare review. “That is a drop in the ocean,” MOA president Albert Karakacha said.
“It is not our wish. We are in business and you have to bear with us.” He said daily earnings for some vehicles had fallen significantly despite higher fares, with a vehicle that previously generated about Sh8,000 a day now averaging only Sh5,500. Operators cite expensive spare parts, maintenance, insurance, salaries and other costs as reasons for maintaining fares.
But Consumers Federation of Kenya secretary-general Stephen Mutoro said fare-setting in the matatu industry remained largely arbitrary, leaving commuters with little protection. “This is not a pricing failure. It is a governance failure,” Mutoro said, accusing the National Transport and Safety Authority of failing to enforce rules that would bring greater accountability to public transport.