Public transport fares on key routes are rising far beyond the actual increase in fuel costs, with a taxpayers’ lobby warning that some operators may be taking advantage of the situation to boost profits.
The National Taxpayers Association says public service vehicles (PSVs) are collecting significantly more revenue per trip following recent fare hikes, despite relatively smaller increases in fuel expenses. The group argues that the difference between higher fares and operating costs suggests commuters are paying more than necessary.
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According to the association, the latest fuel price adjustments linked to geopolitical tensions in the Middle East have created an environment where some operators have raised fares disproportionately. The lobby claims these increases go beyond cost recovery and place an unnecessary burden on passengers.
The association’s Chief Executive Officer, Patrick Nyangweso, cited findings from a simulation conducted along the Nairobi–Nakuru route. The analysis focused on a 14-seater diesel matatu and assessed how fuel price increases affect operating costs.
The study found that the additional fuel cost for a round trip amounted to approximately Sh587. However, operators increased fares by around Sh300 per passenger. With a full vehicle, this translates to roughly Sh4,200 in additional revenue collected from passengers.
After accounting for the higher fuel expense, the simulation indicated that operators could be making a net gain of about Sh3,613 per trip. The association argues that such margins suggest fare adjustments are exceeding what is required to offset operational costs.
Nyangweso said the findings show that some fare increases may be profit-driven rather than reflective of genuine cost pressures. He noted that while fuel prices have risen, the scale of fare hikes in certain cases appears disproportionate.
The remarks come as motorists and commuters continue to feel the impact of higher fuel prices. The government previously reduced Value Added Tax on petroleum products from 16 per cent to 13 per cent and later to 8 per cent for a limited three-month period ending in July 2026. Despite this relief, pump prices remain elevated.
Based on the latest review by the Energy and Petroleum Regulatory Authority, petrol is currently retailing at Sh197.60 per litre, diesel at Sh196.63, and kerosene at Sh152.78. These prices continue to influence transport costs across the country.
The taxpayers’ lobby argues that temporary tax reductions are not sufficient to stabilize fuel costs. It noted that taxes and levies still make up nearly 45 per cent of pump prices, leaving Kenya vulnerable to fluctuations in global oil markets.
The association warned that sustained increases in fuel prices could trigger wider inflationary pressures. Higher transport costs often cascade through the economy, affecting food prices, manufacturing expenses, and operational costs for small businesses.
The lobby also raised concerns that continued fare hikes could reduce disposable income for households. As transport costs rise, commuters may be forced to cut spending in other areas, potentially slowing economic activity in urban centres.
To address the issue, the association is calling for a more predictable fuel taxation framework. Such a structure, it says, would help shield consumers and businesses from sudden price spikes linked to international oil volatility.
The group also proposed the development of strategic fuel reserves and improved fiscal transparency around petroleum pricing. Long-term energy policies aimed at reducing reliance on imported fuel were also highlighted as part of a broader solution.
In addition, the lobby urged transport associations to align fares more closely with actual operating costs. It emphasized that fare adjustments should reflect genuine expenses rather than creating excessive margins at the expense of passengers.
Commuter Impact
The widening gap between fare increases and fuel costs is already affecting daily travel budgets, particularly on high-traffic routes linking Nairobi with satellite towns. Commuters are facing higher costs for routine trips, with fare adjustments often introduced quickly after fuel price changes. This trend increases transport expenses for workers, students, and businesses that rely on public transport.
Actionable Advice for Commuters
- Compare fares across different PSV operators where possible
- Travel outside peak hours if flexible pricing is used
- Monitor official fuel price updates to understand cost trends
- Use digital payment records to track fare changes over time
- Consider shared or alternative transport options for regular routes
The debate over fare increases highlights the ongoing tension between rising operational costs and commuter affordability. As fuel prices remain high, the balance between fair pricing and operator sustainability continues to shape Kenya’s public transport sector.
Source: The Star Kenya
