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Economy

Matatus raise fares 25pc on new fuel tax

fuel
ERC on Saturday released new fuel prices that reflect the 16 percent VAT. FILE PHOTO | NMG 

Travellers are set to pay higher fares from Monday on increased fuel prices even as a motorists lobby asked its members to participate in a strike and legislators gave Treasury Cabinet Secretary Henry Rotich 72 hours to scrap the new fuel levy.

A number of Public Service Vehicle (PSV) operators Sundday issued fare increase notices passing the 16 per cent value added tax (VAT) on fuel to travellers.
North Rift and Great Rift shuttles said fare from Eldoret to Nakuru would increase from Sh300 to Sh450 and that from Eldoret to Nairobi will go up from Sh800 to Sh1,000 starting on Monday.

Molo Line that operates 10-seater shuttles on a number of western Kenya routes said they will hold a meeting this morning on the next course of action.

Sources at operators Easy Coach and Modern Coast said they did have immediate plans to raise their fares.

“Call us after two weeks if we shall have had any fare reviews,” a source at Easy Coach said on Sunday.

All this is happening as Motorists Association of Kenya (MAK) renewed calls to its members to keep off roads in the morning starting Monday until a time when “we shall get fair fuel prices in Kenya”.

The Energy Regulatory Commission (ERC) on Saturday released new fuel prices that reflect the 16 percent VAT as ordered by Mr Rotich.

“We, therefore, wish to call upon motorists to again express their anger on Monday and Tuesday and, if possible, Wednesday by boycotting fuel and participating in a strike of not going to work in the morning as much as possible,” said the MAK in a statement.

The lobby said the fuel price review was done in disregard of Parliament and a petition they had presented to the Treasury CS.

MPs led by Anthony Oluoch (Mathare), threatened to sponsor a censure motion against the Treasury CS Rotich.

"The fact that we are on recess doesn't mean our hands are tied," said Mr Oluoch.

Belgut MP Nelson Koech asked the National Assembly Speaker Justin Muturi to convene a special sitting to discuss the new fuel levy.

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