VAT on fuel hits boat operators in Lamu hard

Lamu boat operators are still struggling to cope with consequences of the eight percent VAT rise on petroleum products implemented five months ago.

A spot check by Shipping on Tuesday revealed that most boat operators, especially those in Lamu Old Town and the adjacent islands of Kizingitini, Faza, Pate, Kiwayu, Manda, Mkokoni and Ndau were still grappling with the VAT increment which has resulted in raised fares.

Shortly after the VAT increment on fuel products was implemented across the country in September last year, boat operators in Lamu were forced to raise fares. Through the Lamu Boat Operators Association, they announced that travellers by boat would pay Sh200 from Lamu Old Town to Mokowe instead of Sh150.

To hire a private speed boat from Lamu Island to Mokowe one pays Sh2,000, up from Sh1,000.

Those travelling from Lamu Old Town to Manda Airport now pay Sh200 instead of Sh100.

Those interviewed by Shipping complained that they were facing a tough time convincing customers to pay the new fares. The boat operators blamed their customers for being rigid and sticking to the old fares. Abubakar Athaman, a coxswain in Lamu Town, said they no longer make profit since most customers find it hard to pay the new fares.

Mr Athman complained of reduced customers due to the tax. “We have no option but to carry our customers with what they offer us. As you know, Lamu is witnessing low numbers of guests travelling to the various destinations,” said Mr Athman.

In Lamu, a litre of petrol goes for as high as Sh140. Boat operator Bahero Kepha said it had become tough to run the business. “We can’t be subjected to higher fuel prices while our customers don’t want to share the costs with us,” he said.