Consumers were yesterday reeling under the weight of higher cost of basic commodities as the effects of the newly enacted Finance Act, 2023 started to bite.

The situation was compounded by the move by the energy regulator to increase pump prices five days ago, affecting the cost of public transport and the prices of numerous commodities and services.

Workers at one company in Ruiru, Kiambu county, were also sent on forced leave as the firm management sought to come to terms with the new tax requirements contained in the Finance Act, which Parliament passed last month but which a court suspended last week.

The court is today set to give directions on the hearing of the case filed by Senator Okiya Omtatah.

Sana Industries, the manufacturers of the popular hair brand Angels, cited the new tax regime imposed by the government as the reason for sending its 7,000-strong workforce on forced leave.

Those who spoke to the press on condition of anonymity for fear of reprisals called on the government to intervene and create a favourable climate for the manufacturers, saying they faced the risk of losing jobs.
“This company plays a pivotal role in the country’s economy and goes the extra mile in reducing unemployment rates in this region.

It should be accorded the necessary support so that we can be retained as workers,” one of the employees told People Daily yesterday.

Meanwhile, Public Service Vehicle (PSV) owners will meet today to determine the new fares that commuters will pay in view of the increase in the cost of fuel.

Speaking to People Daily, Dickson Mbugua, the Secretary General of the Federation of Public Transport Sector (FPTS), said the fares will “certainly increase” to cushion their profits from the recent increase in new petrol and diesel prices announced by the Energy, Petroleum Regulatory Authority (EPRA) last week.
The regulator increased prices despite a court injunction that temporarily stopped the government from implementing the Finance Act, 2023 from taking effect for a week.

Activists have asked Omtatah to amend his case and cite the regulator for contempt of court after it went ahead to raise the pump price for petrol and diesel, now retailing at Sh195.50 and Sh179.60 respectively. The two fuels have a direct impact on transport and factory production costs.

Among those affected by the increases are matatu owners under FPTS, who, collectively own over 100,000 matatus plying various routes across the country.

Some operators have already posted new fare charts announcing a 30 per cent increase and today’s meeting by the federation is largely expected to ratify the decision taken by owners and saccos.

“The sharp increase in fuel costs, coupled with other operational expenses, including an increase in the cost of spare parts, and loan interests among others, have forced us to re-evaluate our pricing structure to ensure the continued sustainability of our services,” said Albert Karakacha, the new Matatu Owners Association chairman in a statement to announce the fare increases.

Fares from Nairobi Central Business District to the estates that form the inner metropolis will go up by between Sh10 to Sh30 while fares from Nairobi to the outer metropolis of Kajiado, Machakos, Murang’a and Kiambu will go up between Sh20 to Sh50. Some of these have already taken effect.

At the Coast, within Mombasa town, service providers plan to increase fares by Sh20 while from Mombasa to coastal towns like Voi, Malindi, Ukunda, Kilifi, Malindi, Lamu and Tana River the fares will be increased by between Sh30 and Sh70.

Long-distance travel from Nairobi to Nyanza, and the Rift Valley region will also be affected by increases of between Sh100 and Sh200 depending on the distance travelled.

Fares to the Central region of Kirinyaga, Nyandarua, Laikipia, Meru and Embu will go up by between Sh100 to Sh150 from Nairobi while the Western regions of Kakamega, Bungoma and Busia will have price increases of between Sh200 to Sh300.

Already, the new fares charged in Nyamira yesterday paralysed transportation for the second day running after workers resorted to walking to their work stations.

In Kisumu, the matatu operators increased their charges by between 20 to 30 per cent in a move they said was aimed at cushioning them from losses.

Matatu Owners Association secretary for the Kisumu branch Ochieng Omwa said majority of PSV operators took the decision to compensate for the increase in fuel prices.

In Kisii, commuters raised concern over the increase in prices of fuel, noting it that it had affected the transport industry. Joel Nyasing’a, a resident, said the cost of food had increased.

Meanwhile, food prices in Mombasa have gone up following the controversial move by EPRA to implement the new Finance Act that led to an increase in the cost of fuel.

Wananchi who spoke to People Daily urged the government to cut down on high taxation to stabilise prices.

According to Salim Hamisi Diwani, a tomato trader, suppliers used to sell a crate of tomato at Sh6,000 but now the same costs Sh11,000. The change, Diwani said, translated to even higher prices passed down to the retailers.

In the fruits section, Triza Mbitha said a bag of avocado, which used to cost Sh2,500 from the supplier, now costs Sh4,500, a difference of Sh2,000.

In Nairobi, Azimio leader Raila Odinga yesterday said he would lead a protest on Friday to demand that the government revises taxes and lowers cost of consumer goods.

–Reporting by Anthony Ng’ang’a, Robert Ochoro, Evans Nyakundi, Reuben Mwambingu, Noven Owiti, Mathew Ndung’u and Noel Wandera