Kenyans brace for tough times as matatu fare set to increase

- Matatu association chairman Kimutai assured commuters the fare would be reasonable

- The government introduced 16 % Value Added Tax (VAT) on fuel products beginning in September

- Kimutai noted the new levy ifimplemented would ultimately increase the price of fuel

Kenyans depending on public transport will be forced to dig deeper into their pockets from September when the Matatu Owners Association implements new charges.

The association's chairman Simon Kimutai on Saturday, August 11, confirmed the development but was quick to assure commuters the fare would be reasonable as it will be based on the calculations of the additional cost.

Simon Kimutai confirmed the development but was quick to assure commuters the fare would be reasonable as it will be based on the calculations of the additional cost. Photo: Nation.

"Additional fares are painful to commuters but the increase in fare prices has to take effect because taxation of fuel translates to an added cost to public service vehicles operators,” he said in a statement.

This comes after the government introduced 16 % Value Added Tax (VAT) on fuel products next month, which Kimutai noted would ultimately increase the price of the precious commodity.

He wondered why the government decided to levy 16 percent tax on fuel products instead of acting on tax evaders in order to collect more revenue.

The Consumers Federation of Kenya (Cofek) has however termed the new levy on fuel products as unconstitutional.

“The proposal to add VAT on fuel is driven by the IMF and not the Kenyan Government. It does not meet the threshold of Article 10 of the Constitution. If allowed, the move will put the taxation levels on a liter of petrol to a staggering 70 %,” Cofek Secretary General Stephen Mutoro said.

Mutoro pleaded with the transport stakeholders to put on hold the tax proposal to allow further structured consultations going forward as saying should it be implemented, the cost of transport will radically rise leading to inflation of other products.