KNBS Reveals Increase in Matatu Fares Despite Fuel Price Drop

The Kenya National Bureau of Statistics on Monday, December 31, revealed that matatu fares saw a hike despite a reduction in fuel prices this month.

In its year-on-year Consumer Price Index (CPI) inflation report, the KNBS disclosed that matatu fares in December 2024 increased by 50 per cent despite a litre of diesel and petrol decreasing by 1.8 per cent and 2.4 per cent respectively. 

Further, EPRA, in its latest December fuel review, reduced the fuel prices of Super Petrol, Diesel and Kerosene. 

In its announcement, the regulator announced that the maximum allowed petroleum pump prices for Super Petrol, Diesel, and Kerosene decreased by Ksh4.37 per litre, Ksh3 per litre, and Ksh3 per litre respectively.  This was the lowest pump price in nearly two years.

Following the communiqué, the prices of Super Petrol, Diesel, and Kerosene were set at Ksh176.29, Diesel at Ksh165.06, and Kerosene at Ksh148.39 respectively.

EPRA noted that the calculated maximum retail prices for petroleum products would be in force for the next 30 days from Sunday, December 15 to January 14, 2025.

Further, EPRA announced that the average landed cost of imported Super Petrol decreased by 4.46 per cent from Ksh82,721 per cubic metre in October to Ksh79,029 per cubic metre in November. 

The new revelation is expected to raise alarm amongst Kenyans who majorly travel use public transport to travel countrywide to celebrate the Christmas festivities in December. The report detailed that a one-way ticket via Country Bus from Nyali to Kisumu is amongst the most affected routes.  

According to KNBS, the rise in matatu fares contributed to an overall increase in the Transport Index, a category in the Classification of Individual Consumption According to Purpose (COICOP), between November and December 2024.

“The Transport Index increased by 1.8 per cent between November 2024 and December 2024, mainly due to a surge in fares of country bus/matatu in some routes by up to 50.0 per cent, in the month of December,” noted KNBS.   

The report also revealed an increase in food commodities such as sifted maize flour, loose maize flour, fortified maize flour, tomatoes, sugar, beans, and maize grain (loose). 

At the same time, Treasury CS John Mbadi previously disclosed that a majority of Kenyans are financially unhealthy as they face numerous challenges in managing daily expenses and investing for the future.