Commuters will finally benefit from fuel prices reduction after Public Service
Vehicle (PSV) operators, in a rare move, lowered matatu fares.
Since August last year, the cost of fuel has been on a free fall in the
country as a result of the falling prices of crude oil.
PSV operators have, however, remained adamant that they would not pass on the
benefit to commuters saying other costs of operations had not yet come down.
But the Matatu Owners Association (MOA) on Tuesday directed Saccos to slash
off their fares.
On Valentine’s Day, the Energy Regulatory Commission (ERC) reduced the price
of Super petrol by Sh8.17, diesel by Sh7.83 and kerosene by Sh13.19
Diesel, which is commonly used by PSVs is currently retailing at Sh75.52 in
Nairobi from a whopping Sh104.67 last July.
FUEL PRICES
While announcing the reduction in fare, MOA Chairman Simon Kimutai said they
have been motivated by the continuous downward trend of the price of fuel as
compared to the past when it kept fluctuating, which made it impossible to
adjust the fares.
“It is only prudent for any type of business to be sensitive to customer
demands and due to the continuous drop in fuel prices we are now obliged to
pass the benefits to our customers,” he said.
“We did not do it immediately because in the past the prices of fuel kept
fluctuating but we have studied the current trends and we don’t see big rise
in the prices of fuel any time soon.”
Mr Kimutai acknowledged that some upcountry routes have already adjusted their
fares downwards since the year started by between 10 to 25 per cent and said
it is only natural that operators in Nairobi to follow suit.
The association said fares from Nairobi to Kisumu have reduced from Sh1,200 to
Sh1,000, Mombasa from Sh1,500 to Sh1,100, Nakuru from Sh400 to Sh300.
REDUCED FARES
Fares from Nairobi to Busia have also reduced from Sh1500 to Sh1100, Meru from
Sh600 to Sh500, Nyahururu from Sh450 to Sh350 and Nyeri from Sh300 to Sh200.
“Each Sacco in Nairobi should thus take responsibility and pass this benefit
to the consumers and those that do not comply will be pushed out of business
by those who already have,” said Kimutai.
The MOA chairman also urged the residents of Nairobi to use public means or
pool cars in order to decongest the city.
Mr Kimutai also urged employers to consider staggering work hours so that peak
and off peak hours can be removed from the city’s transport system as it was
forcing PSV operators to overcharge commuters during some hours.
“Provided an employee clocks in the required work hours I do not see a reason
why the whole country should work at specific hours as it is clogging our
roads,” he said.
PSV operators have been under pressure from the government and consumer lobby
groups since last year to reduce their fare prices in order to correspond with
the falling prices of fuel.