Kenyan commuters are unlikely to see lower public transport fares despite a Sh5 reduction in diesel prices, with matatu operators saying the cut is insufficient to warrant an immediate review of fares.
The decision means households will continue to grapple with elevated transport costs, while businesses involved in freight, agriculture and manufacturing are also yet to indicate whether they will reduce their charges following the latest fuel price adjustment.
The Energy and Petroleum Regulatory Authority (EPRA) reduced the price of diesel by Sh5 per litre to Sh217.86 in Nairobi for the period ending September 14. Petrol remained unchanged at Sh214.03 per litre, while kerosene stood at Sh191.38.
A survey of major Nairobi matatu routes found that fares remain between Sh20 and Sh30 above the levels recorded before fuel prices surged earlier this year. Fares on several major routes now range between Sh100 and Sh150, compared with about Sh70 to Sh130 previously.
The Matatu Owners Association (MOA) has dismissed the diesel reduction as too modest to justify lowering fares.
MOA president Albert Karakacha said operators were still facing significant increases in operating expenses, including vehicle maintenance, spare parts, insurance and wages.
He added that higher fares had not necessarily translated into increased earnings for operators. Some vehicles that previously brought in about Sh8,000 a day are now generating roughly Sh5,500, he said.
However, Consumers Federation of Kenya secretary-general Stephen Mutoro criticised the lack of a transparent system for determining matatu fares, arguing that commuters have little protection from arbitrary pricing.
Mutoro described the situation as a governance problem and accused the National Transport and Safety Authority of failing to enforce regulations that would improve accountability within the public transport sector.
He called for greater investment in commuter rail and city bus services, including last-mile connections, to reduce passengers’ dependence on matatus.
The latest fuel reduction follows a sharp increase earlier in the year. In April, EPRA raised petrol by Sh28.69 per litre and diesel by Sh40.30, pushing pump prices to Sh206.97 and Sh206.84 respectively at the time.
The government subsequently reduced VAT on petroleum products from 16 per cent to eight per cent in April 2026 in response to rising global fuel prices linked to conflicts in the Middle East. The measure was extended in July until October 14, alongside targeted subsidies.
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Diesel later reached a national average of Sh232.86 per litre in May, while petrol rose to Sh214.25.
Freight operators have also warned that higher diesel prices would translate into increased transport charges. The Kenya Transporters Association estimates that fuel accounts for about 55 per cent of road freight operating costs.
Consequently, the latest Sh5 reduction may have limited impact on the cost of transporting goods, with potential knock-on effects on agriculture and manufacturing, both of which rely heavily on diesel-powered machinery, generators and transport.
Persistently high transport costs are also contributing to inflationary pressures. Kenya National Bureau of Statistics data showed annual inflation increased to 6.5 per cent in July from 6.4 per cent in June.
Transport costs rose by 15.6 per cent during the period, while prices of food and non-alcoholic beverages increased by nine per cent.
