NationalNews

More Price Hikes as Kenya Increases Cargo Transport Rates

By David Imaa

 

TORORO/KENYA

 

The Association of Kenya Transporters has increased transport charges by 5 percent.

 

In a statement issued to the media houses yesterday 15th March 2022, the association asked its members to hike the charges by at least five per cent.

 

The hike follows the previous day’s announcement by the Energy and Petroleum Regulatory Authority (EPRA) to the effect that there is a Ksh5 per litre increase in the price of petrol and diesel.

 

In the announcement, KTA indicated that the profit margins are way too low and cannot sustain the businesses and that its members have no choice but to transfer the increase in fuel prices to the cargo owners.

 

“KTA wishes to advise transporters countrywide to increase on transport rates by a minimum of 5 per cent to sustain their businesses under the current circumstances and to circumvent a total collapse of their ventures.

 

For instance, the landing cost of petrol is Ksh78.14. It attracts storage and distribution costs of Ksh3.35 and taxes and levies totaling Ksh59.71. However, a price stabilization deficit of Ksh6.48 is subtracted from the costs to bring it down to Ksh134.72.

 

The increase in the cost of fuel prices will further dent the pockets of both Kenyans and Ugandans who import most of their goods through Kenya.

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