Matatu operators announce 50% fare hike and nationwide strike

Public service vehicle operators in Kenya have raised fares by 50 per cent following a sharp increase in fuel prices. They also called for a nationwide strike starting Monday.

Matatu operators across Nairobi and other parts of the country announced the fare increase on Friday, May 15. The move follows an announcement by the Energy and Petroleum Regulatory Authority that raised petrol prices by Ksh16.65 per litre and diesel prices by Ksh46.29 per litre.

A representative of the matatu association, Albert Karakacha, said the higher fuel costs had made normal operations unsustainable. He stated that fares would rise immediately, with a Ksh100 trip now costing Ksh150.

Karakacha also warned of a complete stoppage of services on Monday. “On Monday, there will be strictly no movement of any vehicles. All the roads will be blocked until the government listens to our cry,” he said.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi attributed the fuel price rises to global oil market instability caused by tensions in the Middle East. He said the government was engaging stakeholders to reduce the impact on consumers.

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Matatu buses operating in Nairobi after strike suspension agreement with government officials shaking hands.
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Matatu operators suspend strike for one week

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The government and transport stakeholders reached an agreement on Tuesday to suspend the matatu strike for one week. This allows for further talks on fuel prices.

The Taxpayers Association of Kenya has warned matatu operators against hiking fares beyond levels justified by recent fuel price increases. The statement follows public uproar after operators raised fares by over 25 per cent. The group provided calculations showing operators are making exorbitant profits.

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Nairobi Governor Johnson Sakaja said the government aims to reach an agreement with public transport operators by Friday to address protests over high fuel prices. Talks follow a one-week suspension of strikes by matatu operators and other transporters.

Energy Cabinet Secretary Opiyo Wandayi has confirmed that diesel prices will be reduced by Ksh10 in the June-July review cycle as directed by President William Ruto.

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Kenya's government has spent more than Ksh 11 billion in two months to keep diesel and kerosene prices steady. The move has raised questions because kerosene makes up less than 1 per cent of national fuel use.

President William Ruto has explained why Kenyans pay higher fuel prices than neighbours like Tanzania and Uganda. He attributed the difference to Kenya's status as a middle-income country and heavy investments in road infrastructure. Ruto spoke during a church service in Karen on Sunday.

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Kenya's government plans to use a Sh17 billion subsidy to protect citizens from fuel price increases over the next 60 days if Middle East conflicts extend beyond May and June. Finance Minister John Mbadi disclosed these plans to MPs, including potential VAT adjustments.

 

 

 

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