Nairobi motorists are set to pay a record Sh130.15 per litre of petrol or about Sh17.9 more beginning next month.
For PSVs heading to and from the city centre, the fare increment will be between Sh10 to Sh30 depending on the distance, said Mr Kimutai.
For estate services, the fares will increase between Sh10 and Sh20.
Nairobi residents are set to feel the pinch as matatu owners announced they will from September 1 increase fares by up to Sh30 to cover additional costs as petroleum products start attracting 16 per cent value added tax (VAT).
Nairobi motorists are set to pay a record Sh130.15 per litre of petrol or about Sh17.9 more beginning next month
“The addition in fares will of course be painful to commuters but the increase has to take effect because taxation of fuel translates to an added cost to public service vehicles operators,” said Matatu Owners Association (MOA) chairman Simon Kimutaion Monday.
For PSVs heading to and from the city centre, the fare increment will be between Sh10 to Sh30 depending on the distance, said Mr Kimutai.
For estate services, the fares will increase between Sh10 and Sh20.
Treasury Principal Secretary Kamau Thugge last week confirmed that petroleum products will start attracting the tax on September 1 in line with Kenya’s promise to the International Monetary Fund (IMF) two years ago.
He said the grace period for the new law was over.
At prevailing prices diesel, used to power commercial vehicles such as buses and tractors, will cost Sh119.77 a litre after adding the tax.
The increase in prices at the pump will not be limited to Nairobi but will be felt countrywide.
VAT was first introduced on petrol, diesel, kerosene and jet fuel in the VAT Act of 2013, with a three-year grace period that would have seen it come into force in 2016 when it was once again deferred to September 2018.
The International Monetary Fund has been pressing Kenya to do away with tax exemptions as part of a wider plan to grow revenues, reduce budget deficits and ultimately slow down the debt pile-up that has in recent months become a source of national concern.
The fare increment comes at a time when City Hall is also cracking down on PSVs flouting the two vehicles per sacco directive.
The county administration said it will continue implementing the directive until the order is fully complied with.
