Matatu Owners Association president Albert Karakacha

The high cost of fuel is hurting economic growth, the Matatu Owners Association has warned.

The association’s president, Albert Karakacha, told the Star in an interview that it will be difficult for Kenyans to travel as fares are likely to rise due to the high cost of fuel.

“The majority of Kenyans are not travelling right now. We have talked to the majority of businessmen; they are saying their business have come down because if people are not travelling, they cannot sell their commodities,” Karakacha said.

The Energy and Petroleum Regulatory Authority (EPRA) increased fuel prices for the October 15 to November 14, 2026, pricing cycle, with super petrol rising by Sh12.93 per litre, Sh9.90 for diesel and Sh28.49 for kerosene.

The new prices took effect on October 15 and will remain in force until November 14, 2026.

In Nairobi, super petrol retails at a maximum of Sh226.96 per litre, diesel at Sh227.76 and kerosene at Sh219.87. In Mombasa, the respective prices are Sh223.81, Sh224.61 and Sh216.71.

Karakacha said the increase will hurt the revenue that the government collects from businesses.

He said the government cannot talk about Pay As You Earn taxes without bringing the cost of fuel down.

“You cannot say that you are reducing; you are trying to help the workers on the issue of Pay As You Earn while the fuel is going up, and it is still affecting their transportation.”

The government has proposed a new Pay As You Earn (PAYE) tax relief measure that exempts workers earning Sh32,333 or less per month from paying income tax.

Karakacha also faulted the government for backtracking on the promise it had made to the sector in Mombasa.

"In Mombasa, with the President, he promised us that he would not increase diesel prices. We sat with him as stakeholders in the transport sector. He assured us that diesel, which is the backbone of public transport, would be protected from arbitrary increases. Today, diesel is up by Sh9.90 per litre. That promise has been broken. What are we supposed to tell our members?" Karakacha said.

Karakacha is now urging President William Ruto to honour the Mombasa agreement that diesel prices won't be increased, saying failure to do so will destroy trust between the Government and investors in the transport sector.

"We are urging President William Ruto to honour the Mombasa agreement that diesel prices won't be increased. Mr President, we believed you in Mombasa. You gave us your word. You told us you understand that diesel is the fuel for the hustler, for the matatu, for the farmer, for the bus. We are asking you to keep that word. Please honour the Mombasa agreement. Withdraw this increase on diesel. Kenyans are suffering," Karakacha pleaded.

Karakacha said that, as part of addressing the high cost of fuel, the sector has in the recent past embraced electric vehicles.

He said operating electric vehicles is far cheaper than fuel.

Karakacha said electric vehicles also help in curbing emissions.

He cited challenges facing the adoption of electric vehicles to include the lack of charging infrastructure and the availability of enough power in areas that are underserved.

Karakacha urged the government to provide the 100,000 electric vehicles it had promised.