KNBS: Why Matatu Fares Increased In December Despite Drop In Fuel Prices
KNBS revealed that matatu fares went up by 50 per cent in December 2024, despite the prices of Super Petrol, Diesel and Kerosene going down by 2.4 per cent, 1.8 per cent and 2 per cent respectively.
Marvin Chege 
Matatu fares in December witnessed an increase despite a reduction in fuel prices this month. This is according to findings by the Kenya National Bureau of Statistics (KNBS) released on Tuesday, December 31.
In its year-on-year Consumer Price Index (CPI) inflation report, KNBS revealed that matatu fares went up by 50 per cent in December 2024, despite the prices of Super Petrol, Diesel and Kerosene going down by 2.4 per cent, 1.8 per cent and 2 per cent respectively.
It is worth noting that the Energy and Petroleum Regulatory Authority (EPRA) earlier this month reduced the prices of the three fuel products by Ksh4.37 per litre, Ksh3.00 per litre and Ksh3.00 per litre respectively.
Nairobi motorists are currently paying Ksh176.29 for a litre of Super Petrol, Ksh165.06 for a litre of Diesel and Ksh148.39 for a litre of Kerosene. 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.
A car being fuelled at a petrol station. /FILE
This new revelation could spark mixed reactions amongst Kenyans who majorly 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.
Price Of Food Commodities
The report also revealed an increase in basic food commodities over the past month, with sifted maize flour being the biggest casualty in terms of a price hike between November and December 2024, experiencing a 7% increase in prices.
The average price of sifted maize flour retailed at Ksh134 in November but rose to Ksh143 in December. Fortified maize flour also saw its price increase from Ksh151 for a 2kg pack to Ksh160 in December 2024.
Other food items whose prices hiked over the past month include Sukuma wiki (Kale), beans, sugar, loose maize grains and tomatoes. All these items experienced marginal increases in price over the last month, with maize flour and tomatoes experiencing a 1.8 per cent increase in price.
Non-food items whose prices hiked in the last month include electricity (0.6 per cent) and house rent for a single room (0.4 per cent).
However, some items experienced a notable reduction in prices, with the price of mangoes dropping by a staggering 6.2 per cent. Irish potatoes (5 per cent), cabbages (2.8 per cent), onions (1.1 per cent), and brown wheat flour (0.9 per cent) are among the biggest price droppers between November and December 2024.
"The overall year-on-year (annual) inflation rate as measured by the Consumer Price Index (CPI) was 3.0 per cent, in December 2024. The inflation rate was 2.8 per cent in November 2024. The month-to-month inflation rate was 0.6 per cent in December 2024," read the report in part.
"The annual inflation was mainly due to an increase in prices of commodities under the Food and Non-Alcoholic Beverages, and Transport. The Housing, Water, Electricity, Gas and Other Fuels Index decreased over the same period."
