Matatu operators in Kenya have been cautioned against imposing unjustified fare increases following the latest fuel price review.

In a press briefing on Monday, April 20, the National Taxpayers Association of Kenya (NTA) warned PSV operators, emphasising that arbitrary fare hikes are placing an unnecessary financial burden on commuters.

The association urged transport providers to align pricing with actual fuel cost adjustments to protect the public from exploitation.

“This is uncalled for, and we should not continue to really rob Kenyans in broad daylight. So we are calling all the associations to observe this despite the economic challenges that come with the fuel shocks,” the association’s Chief Executive Officer (CEO), Patrick Nyangweso, said.

Moreover, NTA said the direct impact of the fuel hike on operating costs for a typical 14-seater matatu is modest compared to the sharp fare increments now being charged on several routes.

Using the Nairobi-Nakuru route as an example, the association broke down the numbers to illustrate what it termed exorbitant profit-taking under the guise of fuel shocks.

According to the calculation, a 14-seater diesel matatu covering the 160-kilometre trip between Nairobi and Nakuru consumes about 32 litres of diesel for a round trip of 320 kilometres, assuming an average fuel efficiency of 10 kilometres per litre.

Following the latest fuel price adjustment, diesel costs have risen by Ksh18.35 per litre, increasing from Ksh178 to Ksh196.63, which pushes the additional fuel expense per round trip to about Ksh587.

Despite this modest rise, the association reports that some matatu operators have hiked fares by as much as Ksh300 per passenger on certain routes. With a full capacity of 14 passengers, this results in an extra Ksh4,200 per trip, significantly surpassing the actual increase in fuel costs.

“If you do your mathematics rightly, Matatus are making exorbitant profits, and this is what we don’t think as a taxpayer association, we want to encourage this,” he said.

The lobby group’s concern comes after matatu operators increased fares by over 25 per cent following the Energy and Petroleum Regulatory Authority (EPRA) raising diesel prices by over Ksh40.

But later, the authority revised the prices after VAT on fuel was reduced from 13 per cent to 8 per cent, but the operators did not reduce their prices.

NTA argued that while operators are justified in adjusting fares during fuel shocks, the increases should be proportional to the real increase in operational costs, rather than used as an opportunity to profit at the expense of commuters already grappling with a high cost of living.

At the same time, the association questioned why electric bus operators have increased fares despite not being directly affected by changes in diesel prices.

The group further challenged matatu saccos to publicly justify recent fare hikes using fuel cost data, warning that failure to self-regulate could invite regulatory action.

“Operators should adjust fares upward only within the recovery margin, not beyond it,” Nyangweso said.