Economic Strain Deepens as Fuel Hike Pushes Up Cost of Living

Kenyans woke up to a new wave of economic hardship this week as they began to feel the impact of increased fuel prices, which caused a sudden rise in transport fares, food prices, and the cost of essential services across the country.

The historic increase announced by the Energy and Petroleum Regulatory Authority (EPRA) has disrupted the economy, with transporters, traders, and service providers quickly passing the additional costs on to consumers who are already struggling with the high cost of living.

In the new pricing announcement, EPRA raised the price of petrol by KSh 28 per litre and diesel by KSh 40.

The chairman of the Matatu Owners Association (MOA), Albert Karakacha, announced a 25 percent increase in fares nationwide to cope with the high fuel costs.

“We have consulted and agreed to increase fares by 25 percent across the country to cushion ourselves. We urge our customers, who are the public, to understand that this is not our intention. We are in business and they must bear with us,” said Mr. Karakacha.

“The fare increases and other charges were an immediate response to the new fuel prices. We are assessing the impact and will announce further measures later,” said Mr. Reuben Donga, deputy chairman of 2NK Sacco, which operates in Central and Rift Valley regions.

The cost of transporting cargo from Port of Mombasa to Nairobi and other areas has also risen significantly, and the extra costs are expected to be passed on to consumers of imported goods.

The chairman of the Kenya Transporters Association (KTA), Newton Wang’oo, said the cost of transporting goods nationwide would increase by about 14 percent starting yesterday.

Transporting a 20-foot container from Mombasa to Nairobi will now cost KSh 130,000, up from KSh 115,000, while a 40-foot container will cost KSh 142,000, up from KSh 119,000.

KTA, which represents over 6,000 cargo trucks nationwide, said its members cannot absorb the additional costs and will pass them on to consumers.

The Truckers Association of Kenya (TAK) has instructed its members to increase transport charges by 30 percent, citing the rise in fuel prices.

Public transport operators, including matatu companies, have also increased fares by between 30 and 50 percent.

Fares from Meru to Nairobi have risen from KSh 1,200 to between KSh 1,500 and KSh 2,000, according to Joseph Bundi, secretary of the Meru Matatu Owners Association.

In Murang’a, transporters of construction materials have increased their charges by between 30 and 50 percent, a move expected to raise housing costs.

Fares from Nairobi to Murang’a have increased to between KSh 350 and KSh 400, up from KSh 300, while passengers traveling between Thika and Murang’a now pay KSh 250, up from KSh 150. In Nakuru, passengers on several routes now pay KSh 70, up from KSh 50.

At Wakulima Market, the price of onions has increased from KSh 100 to KSh 130 per kilogram.

Passengers traveling from Bomet to Eldoret now pay KSh 1,000, up from KSh 900, with similar fares for those heading to Nairobi.

In Narok South and Emurua Dikirr, fares have risen from KSh 500 to KSh 700 on some routes, and from KSh 300 to KSh 500 on others.

In Nyandarua and Laikipia counties, passengers traveling from Ol Kalou to Nyahururu now pay KSh 200, up from KSh 150, while those traveling between Nyahururu and Nakuru pay KSh 400, up from KSh 300.

Farmers in Uasin Gishu, Trans Nzoia, and Nandi counties say the fuel price increase has raised the cost of mechanized farming.

Diesel used to power tractors and harvesters has become very expensive.

In Lodwar, Turkana, bodaboda operators have parked their motorcycles due to high fuel prices, saying customers are avoiding travel due to unpredictable fares.

In Kabarnet and Baringo, fuel prices rose from KSh 179 to KSh 207 per litre.

In Kitale and parts of Trans Nzoia, many fuel stations had implemented the new prices by this morning, with petrol and diesel selling at KSh 207 per litre.

In South Nyanza, matatu operators said they would adjust fares while trying to balance protecting passengers and sustaining their operations.

The coordinator of the Busia, Kisumu, and Migori transport group (BUKIMI), Joshua Ouma, said fares would be adjusted in line with the new fuel prices.