Kenya’s public transport industry is having it rough following the adjustment of fuel prices despite court order temporarily blocking the implementation of Finance Act 2023.
Among other tax measures to finance the 2023/4 budget, the Finance Act introduced 16 per cent on fuel products from previous 8 per cent prompting Energy Petroleum Regulatory Authority to adjust the prices of Super Petrol, Diesel and Kerosene.
Boda Boda operators have threatened to hike prices by 30 per cent to reflect the changes in pump prices. On Sunday they piled pressure on the BodaBoda online application companies to adjust fare prices on their platforms or face a go-slow.
Key players in the online bodaboda business include Bolt, Little and Uber.
The National online boda boda transport network organization on Sunday issued a 48-hour ultimatum failure by which, action aimed at keeping operators in business amid high cost of living shall be taken.
“For every trip we currently make, 90 per cent earning goes on petrol, the remaining ten per cent is not enough to cater for maintenance of the motorbikes and food for our families,” said Moses Mukabane, a BodaBoda Rider.
“When you request a ride beginning Monday, we will adjust the prices by 30 per cent should the online app companies fail to increase prices on their platforms,” said Calvince Okumu, Chairman National online boda boda transport network organization.
The riders say the move has been occasioned by recent increase of fuel prices following implementation of controversial Finance Act. Pursuant to the Finance Act 2023, Energy, Petroleum and Regulatory Authority (EPRA) has revised VAT on Super Petrol, Diesel and Kerosene from 8 per cent to 16 per cent effective 1st July 2023.
EPRA defied a temporary court order which suspended the Finance Act that also provides for new or increased taxes on salaries, housing levy, mobile money transfer, food, fuel among other services. The matter filed by Busia Senator Okia Omtata at the High Court was on Monday forwaded to Chief Justice Martha Koome.
Justice Thande directed that the file be forwarded to Chief Justice Martha Koome to constitute a bench of not less than three judges to hear and determine the petition challenging the Finance Act.
Omtata challenged the implementation of the act on grounds that Senate was not involved in its passing. He also filed a contempt application against EPRA for enforcing the new fuel prices despite suspension of the same by the court.
Super Petrol, Diesel and Kerosene have increased by Sh13.49, Sh12.39 and Sh11.96 per litre respectively since the EPRA defied the court hurting further commuters and leading to adjustment in food items.
A litre of Diesel has increased from Sh167.28 to Sh179.67 and Kerosene has has gone up to Sh173.44 from Sh161.46. A litre of Super Petrol that retailed at Sh182.04 before July 1, is now being bought at Sh195.53.
PUBLIC TRANSPORT
The BodaBoda operators bid to hike prices by 30 per cent follows similar one by Matatu owners who last week said Public Service Vehicles will increase fares by 30 per cent.
“After a careful consideration and extensive consultations with stakeholders, MOA has determined that a fare adjustment is necessary to mitigate the impact of these challenges,” stated the Matatu Owners Association Chairman Albert Karakacha.
“Effective 5th July 2023, passengers can expect a moderate increase between 10 – 20 per cent of the current fares charged across the various routes, including town service and long-distance travels,” he added.
The town services in all regions in Kenya are expected to face a fare increment of between Sh10 and Sh50 while the long-distance route travels are expected to hike by Sh100 to Sh300.
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