Easy Coach, a bus company operating on various routes in the country, has announced a fare increase across all its routes.
In a statement released on Tuesday, the company stated that fares will be raised by Ksh100 on all routes.
The fare hike comes in response to the recent increase in the fuel Value Added Tax (VAT), which has been raised to 16 per cent following the passing of the controversial finance bill.
Although the implementation of the finance bill has been halted by the court, the increase in VAT has impacted businesses, including Easy Coach, prompting them to adjust their fare rates accordingly.
"As a result of the recent increase in the fuel Value Added Tax (VAT), we are obliged to incorporate this adjustment into our fare rates. The fare for all our routes will be adjusted upwards by Ksh100. Book your tickets before August 1, 2023, to save the Ksh100," stated Easy Coach.
The Energy Petroleum Regulatory Authority (EPRA) raised fuel prices due to the increased value-added tax from 8 per cent to 16 per cent.
The retail price per litre of petrol, diesel, and kerosene increased by Ksh13.49, Ksh12.39, and Ksh11.96, respectively, starting from July 1.
Despite a court order to halt the implementation of the Finance Act 2023, which doubled VAT for fuel, the fuel prices were adjusted upwards.
In mid-July new retail prices were set at Sh194.68 for petrol, Ksh179.67 for diesel, and Ksh169.48 per litre for kerosene, and these maximum retail pump prices were set to be in effect from Saturday, July 15, to August 14, 2023, as per the announcement by EPRA.