Matatu Operators Announce Increase in Fares After EPRA Hikes Diesel Past Ksh200

Matatu Operators Announce Increase in Fares After EPRA Hikes Diesel Past Ksh200

Transport operators and matatu saccos across Kenya have announced an immediate increase in fares following the latest fuel price review by the Energy and Petroleum Regulatory Authority (EPRA), which took effect at midnight on April 15, 2026.

The fare adjustments come in response to a sharp rise in diesel prices, a key input in the public transport and freight sectors. In its latest pricing cycle for April to May, EPRA raised the cost of Super Petrol by Ksh28.69 per litre and Diesel by Ksh40.30 per litre, pushing diesel prices above the Ksh200 mark for the first time in months.

Following the revision, Super Petrol, Diesel and Kerosene are now retailing at Ksh206.97, Ksh206.84 and Ksh152.78 per litre respectively, with the new rates set to remain in force until May 14, 2026. The increase has triggered immediate reactions across the transport industry, with operators warning that the surge in fuel costs is unsustainable.

The Kenya Transporters Association (KTA) issued an advisory noting that diesel prices had risen by approximately Ksh40 per litre, translating to an estimated 24.5 per cent increase. The association described the hike as a significant disruption to the cost structure of road transport services.

According to KTA, fuel accounts for nearly 55 per cent of total operating costs in the transport sector, meaning any increase in pump prices has a direct and immediate effect on fares and freight charges. Based on its internal analysis, the latest adjustments are expected to drive up overall transport costs by between 13 and 14 per cent.

“Members are advised that such a substantial rise in input costs cannot be absorbed sustainably. It is therefore necessary for all members to immediately review their cost structures and adjust transport rates accordingly to reflect the new cost realities,” the association said in a statement.

Public service vehicle operators have echoed similar concerns, indicating that fare hikes are inevitable. Albert Karakacha, President of the Matatu Owners Association, confirmed that operators had already reached a consensus to increase fares starting Wednesday.

“We have been consulting, and from tomorrow, we will push the prices for bus fares upwards. If you see the new prices, diesel has really gone up, and that is what we use most, so that has to go to the common mwananchi,” Karakacha stated.

The fare increases are expected to affect commuters nationwide, particularly in urban centres such as Nairobi, where thousands rely on matatus for daily transport. Industry players have urged passengers to prepare for higher travel costs as operators adjust to the new pricing environment.

At the same time, KTA advised its members to maintain transparency when implementing the fare adjustments by engaging clients and passengers on the reasons behind the increases. This, the association noted, is critical in maintaining trust and avoiding disruptions in service delivery and supply chains.

Despite the price hikes, EPRA indicated that the government had taken measures to cushion consumers from the full impact of rising global oil prices. The regulator confirmed that Value Added Tax (VAT) on petroleum products had been reduced from 16 per cent to 13 per cent, while approximately Ksh6.2 billion had been deployed from the Petroleum Development Levy to stabilise pump prices.

However, analysts warn that the mitigation measures may offer only limited relief, as global oil market volatility—driven in part by geopolitical tensions—continues to exert upward pressure on fuel costs.

The ripple effect of the fuel price increase is expected to extend beyond transport, potentially driving up the cost of goods and services across the economy. With transport forming a critical link in supply chains, businesses may be forced to pass on additional costs to consumers.

As the new fuel prices take hold, both operators and commuters now face a challenging period marked by rising costs, with calls growing for long-term solutions to stabilise fuel prices and protect households from recurring economic shocks.

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Matatu Operators Announce Increase in Fares After EPRA Hikes Diesel Past Ksh200