Fuel Hits Ksh200: Matatu Fares Jump 25% Across Kenya

Matatu operators have announced a nationwide 25 percent increase in fares following a sharp rise in fuel prices.

The decision was confirmed by Matatu Owners Association chairman Albert Karakacha after diesel prices exceeded Ksh200 per litre, increasing operating costs across the sector. The adjustment is expected to affect commuters and motorists as transport expenses rise.

The increase follows a fuel price review by the Energy and Petroleum Regulatory Authority (EPRA) on Tuesday. Super petrol rose by Ksh28.69 per litre and diesel by Ksh40.30, while kerosene prices remained unchanged. In Nairobi, petrol now costs Ksh206.97 per litre, diesel Ksh206.84, and kerosene Ksh152.78. The changes have placed additional financial pressure on households and businesses.

Motorists Association of Kenya chairman Peter Murima said the higher fuel costs would affect the business environment, noting that transport expenses are likely to increase across multiple sectors. EPRA data shows a significant difference between the base cost of fuel and the final retail price. 

The landed cost of petrol is about Ksh107 per litre, but the pump price is nearly double. The increase is due to taxes, levies, distribution charges, and margins applied along the supply chain. These include excise duty, VAT, pipeline fees, and wholesale and retail margins, which together add more than Ksh80 per litre. Analysts describe this as a layered taxation structure that raises the final cost for consumers.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the government had taken steps to limit the impact. He noted that the price of kerosene was held steady to support low-income households. He also said a Ksh6.2 billion subsidy had been introduced and VAT temporarily reduced from 16 per cent to 13 percent.

Wandayi attributed the increase in fuel prices to higher global petroleum costs linked to conflict in the Middle East. He said prices may stabilise if international conditions improve.