Matatu Fares Set to Rise by 10% After EPRA Fuel Price Review

MOA president Albert Karakacha said operators could no longer absorb the higher cost of diesel, which powers a large share of Kenya’s public service vehicles. He said the association had consulted members and told them to increase fares because the current charges were no longer commercially viable.

What EPRA announced

EPRA raised Super Petrol by Sh12.93 per litre, diesel by Sh9.90 per litre and kerosene by Sh28.49 per litre in its October–November pricing cycle. The new prices took effect on Thursday, October 15, and will remain in force until November 14, 2026.

In Nairobi, a litre of Super Petrol now retails at Sh226.96, diesel at Sh227.76 and kerosene at Sh219.87. In Mombasa, Super Petrol costs Sh223.81 per litre, diesel Sh224.61 and kerosene Sh216.71.

The regulator attributed the adjustments to higher international costs of imported petroleum products, including disruptions linked to the conflict in the Middle East. However, the decision has reignited debate over Kenya’s fuel-pricing structure, taxes and the government’s handling of petroleum importation.

Why matatu fares are rising

Matatus are highly sensitive to diesel prices because fuel is one of their largest daily operating expenses. When diesel rises, operators face a direct increase in the cost of every trip, especially on long-distance and high-traffic urban routes where vehicles consume more fuel.

Karakacha said the industry is also carrying rising costs beyond fuel, including tyres, spare parts, insurance and vehicle-loan repayments. He said tyre prices have risen from about Sh25,000 to between Sh38,000 and Sh45,000, while comprehensive insurance premiums have increased from roughly Sh180,000 to Sh250,000.

Under the MOA’s advice, a fare that previously cost Sh100 could rise to Sh110, while a Sh200 fare could increase to Sh220. The actual amount passengers pay may still vary by route, vehicle capacity, time of day and whether individual operators follow the association’s directive.

Political dispute over diesel

The fare-hike warning has also reopened a political dispute between matatu owners and the government. Karakacha accused President William Ruto of failing to honour commitments made during talks with transport stakeholders in Mombasa in May, when operators ended protests after the government moved to reduce diesel prices.

He said the President had assured transport operators that diesel, which he described as the backbone of public transport, would be protected from arbitrary increases. The latest Sh9.90 rise in diesel has therefore been framed by MOA as a broken promise.

The dispute is significant because fuel-price increases previously triggered a nationwide matatu strike in May. The two-day action left commuters stranded in Nairobi and other towns, disrupted transport services and was accompanied by confrontations with police; the Interior Cabinet Secretary reported four deaths and more than 30 injuries.

Wider cost-of-living impact

A 10 percent fare increase may appear modest on a single trip, but its cumulative effect is substantial for daily commuters. A worker who spends Sh200 each way, or Sh400 daily, would pay an extra Sh40 per day under a 10 percent increase, about Sh800 over a 20-working-day month.

For students, casual workers and low-income households, the increase could force difficult trade-offs between transport, food and other essentials. It may also affect families travelling as schools close, a concern Karakacha raised because many parents have already budgeted for end-of-term travel.

The increase could also feed into wider inflation. Higher matatu fares raise the cost of moving workers, goods and services, while transport operators passing on diesel costs can affect deliveries, market prices and small-business margins.

Calls for government intervention

MOA wants the government to shield the sector and consumers from fuel-price volatility through measures such as reintroducing fuel subsidies or creating a stabilisation fund. It is also calling for a review of taxes and levies on petroleum products.

Separately, the Motorists Association of Kenya (MAK) has threatened peaceful protests unless the government addresses concerns over fuel pricing. MAK wants an independent review of the October–November adjustments, an audit of the Government-to-Government petroleum importation arrangement, publication of detailed pricing calculations and scrutiny of the Petroleum Development Levy Fund.

The association has particularly questioned why kerosene rose by Sh28.49 per litre, more than diesel and petrol, despite what it says was a lower percentage increase in reported landed costs. It argues that EPRA should disclose how taxes, freight, insurance, distribution margins and stabilisation adjustments shape final pump prices.

What commuters should expect

The MOA’s 10 percent directive is an industry recommendation rather than a legally uniform national fare schedule. In practice, passengers should expect route-level adjustments, with some SACCOs and individual owners implementing the increase immediately and others negotiating or delaying changes.

Commuters should therefore anticipate higher fares on many urban and intercounty routes from mid-October, particularly where diesel consumption is high. Unless the government intervenes or fuel prices fall in the next EPRA review, the increase is likely to remain in place through November 14.

The development underscores a recurring problem in Kenya’s transport economy: global oil shocks, taxation and import costs quickly move from fuel stations to matatu fares, placing the burden on ordinary passengers. For now, MOA’s message is clear, operators say they cannot absorb the cost, and commuters will be asked to pay more.