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PSVs increase wages by 30% after doubling VAT on fuel
Tuesday 04 July 2023
Cars line up to refuel at a petrol station inside Nairobi on July 1, 2023. Photo | Frances Nderito | NMG
Travelers will pay up to 30 percent more to travel around the country after carriers raised fares in response to the doubling of value-added tax (VAT) on petroleum products to 16 percent.
Analysis of the new price guide shows that Public Service Vehicle (PSV) operators traveling on western Kenya’s roads will charge the highest fare in the latest revision by the Matatu Owners Association (MOA).
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The Ministry of Agriculture says commuters from the city to western towns such as Kakamega, Bungoma, Busia, Viega and Mumias will now pay an additional 200-300 shillings to travel into the city.
Currently, passengers heading to Western Kenya from the city pay around Sh1,500 on average.
For their part, commuters from the Nyanza counties of Homa Bay, Megure and Kisii will now pay an additional 100-200 shillings to Nairobi, according to the Ministry of Agriculture’s price review.
Travelers from Mount Kenya will pay an additional KES 150 to the city.
“From July 5, 2023, travelers can expect a moderate increase of between 10 and 20 percent from the current fees charged across various routes, including city service and long-distance travel,” said lobby chief Albert Karacacha on Tuesday.
While announcing the price increase that goes into effect today, the Department of Agriculture said the review will affect all PSV companies operating in the city as well as across provinces.
The change in the fare price comes just days after the Energy and Petroleum Regulatory Authority (EPRA) increased pump prices despite a court order suspending the 2023 Finance Act.
From 1 July, fuel prices jumped upwards with petrol increasing by 13.49 shillings per litre, diesel by 12.39 shillings per liter and kerosene by 11.96 shillings.
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In Nairobi, a liter of super petrol retails for Sh195.53 while diesel has jumped to Sh179.67 – the highest price since Kenya began setting pump prices. Passengers from Kajiado, Machakos, Muranga and Kiambu will part between 20 and 50 shekels to Nairobi.
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