Monday, August 15, 2011

Matatu operators threaten to hike fares




Written By:Sylvester Ruto,    Posted: Mon, Aug 15, 2011
The announcement comes after the Energy Regulatory Commission increased fuel prices to a high of 120 shillings in some towns effective Monday morning.
Matatu Owners Association has threatened to hike fares any time following fuel price increase by the Energy Regulatory Commission (ERC).  
MOA says the public should prepare to dig deeper in to their pockets since the public transport industry has no choice but to pass the burden to the consumer.
Speaking to Kenya Briadcastibng Corporation on phone, the association's chairperson Simon Kimutai called on the government to consider reducing taxes on Matatu operators to avert an increase on the fares.
He however cautioned matatu operators to desist from exploiting the public. Explaining the fuel hike, the ERC pointed out that the weakening shilling and the increasing cost of fuel at the International market propelled the upward shift in fuel cost in the country.
Starting Monday, Super petrol will go up by 1.28 shillings to 117.22 shillings a litre in Nairobi.
Regular will retail at 116.71 shillings a litre while Kerosene will now retail at 88.96 shillings per litre going up by 2.80 shillings.  
Diesel will be sold at 108.97 shillings per litre.
Elsewhere, Mt Kenya Matatu owners Association have threatened to go to court to force the government rescind the decision of banning the 14 seater matatus from operation.
The current chairman Michael Muchiri Kariuki said the government will have to listen to them as over half a million people may lose their job if the decision to ban the 14 seater from the roads is implemented.
Kariuki speaking in Embu during a meeting with officials representing over 91 matatu Saccos said persistent to implement the ban may lead the operators calling for a country wide strike.
He said the association has written an appeal to the minister for transport who is yet to respond to their request.
Kariuki said there is an existing gap since the government declined to register new 14 seater matatus in the country.
The chairman said they are not opposed to introduction for buses in the Central Business district but the buses cannot access the rural areas where the 14 seater should be allowed to operate.
He said removal of the category will take back the country to the old days which are practically impossible adding that the government should give them a hearing to save the industry.
Manyatta Member of parliament, who also attended the meeting in his capacity as a stake holder in the matatu industry, said the excuse of the road safety the government is giving for the ban of 14 seater is not good enough to scrap the whole sector considering the big number of people who depend on the industry.
He said the government should address the whole spectrum and not from only one angle.
Kathuri picked the traffic department as the greatest impediment to road safety in the country saying the government should deal with the problem first before turning to banning the 14 seater matatus.

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