Operators on the other hand charging an extra Sh300 per passenger could collect Sh4,200 more in revenue Public service vehicles are making as much as Sh3,600 more per return trip after hiking fares an amount the National Tax Payers Associations says is way above the new pump prices.
The lobby accused PSV operators of exploiting commuters through steep fare hikes which are way above their operational costs. The lobby said the latest surge in pump prices, occasioned by instability in the Middle East, has given an opportunity for some transport operators to impose unjustified fares.
The association’s Chief Executive Officer Patrick Nyangweso said a simulation conducted on the Nairobi-Nakuru route showed that a 14-seater diesel matatu incurred an additional fuel cost of about Sh587 for a round trip. Operators on the other hand are charging an extra Sh300 per passenger, collecting Sh4,200 more in revenue, leaving a net gain of approximately Sh3,613.
“The findings indicate that fare increases in some cases go well beyond cost recovery and instead amount to profiteering at the expense of commuters,” said Nyangweso. The statement comes as motorists continue to grapple with higher fuel costs despite the government’s decision to reduce Value Added Tax on petroleum products from 16 per cent to 13 per cent and later to 8 per cent for a three-month period ending in July 2026.
Even with the tax cut, current pump prices remain elevated, with petrol retailing at Sh197.60 per litre, diesel at Sh196.63 and kerosene at Sh152.78 per litre, based on the latest review by the Energy and Petroleum Regulatory Authority. The taxpayers’ lobby argued that temporary tax relief alone is insufficient because taxes and levies still account for nearly 45 per cent of pump prices, leaving Kenya highly exposed to international oil shocks.
“Sustained fuel price increases risks that could trigger wider inflation across the economy, including higher food prices, rising transport costs, shrinking profits for small businesses and increased production expenses for manufacturers and farmers,” added Nyangweso.
The association is now calling on the government to establish a predictable fuel tax framework that can cushion consumers and businesses from sudden spikes in global oil prices.