Fuel Shock Hits Kenyans as Matatu Owners Hike Fares by 10% Following EPRA Price Increase
The reported 10 per cent matatu fare increase announced by the Matatu Owners Association on October 15, 2026, has brought renewed attention to the connection between fuel prices, public transport costs and Kenya's wider cost-of-living challenges. Association president Albert Karakacha says operators need to adjust fares to cope with rising expenses following EPRA's latest fuel-price increase. The regulator's new prices, effective from October 15 to November 14, have raised the cost of petrol and diesel, placing additional pressure on transport businesses. For commuters, the development means that daily journeys could become more expensive, leaving workers, students, traders and low-income households with less money for other necessities.
Kenyan commuters are facing the possibility of higher daily transport expenses following reports that matatu operators have increased fares by 10 per cent in response to rising fuel prices. The development has renewed concerns about the cost of living, particularly among workers, students, small-business owners and other Kenyans who depend on public transport to travel to work, school, markets and other essential destinations.
The reported fare adjustment comes at a time when fuel prices remain a major concern for the transport industry. Petrol and diesel are among the key operating expenses for public service vehicles (PSVs), and changes in pump prices can affect the cost of running matatus across the country. Operators must also meet other expenses, including vehicle maintenance, insurance, licensing, staff payments and daily operational costs.The Matatu Owners Association (MOA), led by its president, Albert Karakacha, has directed its members to increase passenger fares by 10 per cent following the latest rise in fuel prices announced by the Energy and Petroleum Regulatory Authority (EPRA). Reports published on October 15 and 16, 2026, indicate that the association wants operators to pass part of the increased operating costs on to passengers.
Karakacha explained that matatu businesses must remain financially sustainable, arguing that operators cannot continue absorbing rising fuel expenses while maintaining the same fares. He said the association had consulted members before recommending the increase.
The decision is expected to affect commuters using public service vehicles in Nairobi and other parts of the country. However, the actual increase paid by passengers may vary depending on the route, distance, time of travel and how individual operators implement the association's recommendation.Diesel KSh 9.90 KSh 227.76
Kerosene KSh 28.49 KSh 219.87
Source: EPRA's October 15–November 14, 2026, fuel-price schedule.
Diesel is particularly important to the matatu sector because many public service vehicles rely on diesel engines. When diesel prices rise, operators may face higher costs for every journey they make, especially on busy routes where vehicles travel long distances throughout the day.
Petrol price increases can also affect transport businesses operating petrol-powered vehicles. Meanwhile, higher kerosene prices add to the wider pressure on households that use the fuel for cooking and lighting.Why Matatu Operators Say Higher Fares Are Necessary
Matatu owners operate businesses that depend on a careful balance between daily revenue and expenditure. Every vehicle must generate enough income to cover fuel, maintenance, insurance, licensing and other expenses while providing a return to its owner.
Fuel is a recurring cost because matatus must be refuelled regularly to serve passengers. A vehicle operating from the early morning until late in the evening may make several trips, meaning a sustained increase in diesel prices can significantly affect its daily operating budget.The following examples illustrate how the adjustment could affect passengers:
Previous one-way fare Fare after a 10% increase Additional cost for a return trip
KSh 50 KSh 55 KSh 10
KSh 100 KSh 110 KSh 20
KSh 150 KSh 165 KSh 30
KSh 200 KSh 220 KSh 40
KSh 300 KSh 330 KSh 60
These are illustrative calculations, not confirmed fares for specific routes.
Although the additional amount may appear small for a single trip, the cumulative effect can be substantial. Someone paying an extra KSh 20 per working day would spend approximately KSh 440 more over 22 working days.Pressure on the Government Over Fuel Prices
The latest fare announcement also places renewed attention on the government's approach to fuel affordability and the cost of living.
According to reports published after the latest fuel review, Karakacha criticised the increase and accused President William Ruto of failing to honour a commitment concerning diesel prices made during discussions with transport-sector stakeholders in Mombasa. That allegation reflects the association president's position and should be distinguished from an independently established finding about the government's commitments. Calls for Fairness and Transparency in Fare Adjustments
The announcement of a 10 per cent increase does not mean that every matatu on every route will necessarily charge the same additional amount.
Fare levels vary considerably depending on distance, passenger demand, operating expenses and local transport conditions. Some routes also experience higher demand during morning and evening peak hours.
For this reason, commuters will want clear information about the revised fares on the routes they use most frequently.Transparent communication could help reduce disagreements between passengers, drivers and conductors. Operators should communicate applicable fares clearly, while passengers should seek clarification where charges appear inconsistent or unreasonable.
Transport associations also have an important role in communicating their recommendations and engaging with commuters over the practical effects of fare changes.
At the same time, authorities should monitor compliance with applicable transport rules and address disputes through the appropriate channels.
The goal should be to ensure that operators can cover legitimate business expenses while protecting passengers from confusion, unnecessary disputes and unreasonable charges.The current situation highlights the vulnerability of Kenya's public transport industry to changes in fuel prices. Matatus provide a vital service to millions of people, but their operations are heavily influenced by the cost of fuel and vehicle maintenance.
Repeated increases in fuel costs can make it difficult for operators to plan their businesses. Owners may need to reassess routes, schedules, maintenance budgets and vehicle replacement plans.
In the longer term, improving fuel efficiency could help reduce some of these pressures. Well-maintained vehicles, more efficient route planning and measures to reduce unnecessary fuel consumption may help operators control expenses.






