Passenger transport costs surge in Kenya despite stable fuel prices » Capital News

NAIROBI, Kenya, Aug 31 – Passenger transport costs in Kenya rose sharply in August 2025, even as fuel prices remained largely unchanged, according to the latest Consumer Price Index (CPI) and Inflation Report released by the Kenya National Bureau of Statistics (KNBS).

The report shows that bus and matatu fares on the busy Mombasa–Nairobi route increased by 15.4 per cent, climbing from Sh1,300 in July to Sh1,500 in August. The surge in long-distance fares was mirrored by higher local travel expenses, with tuk-tuk charges edging up by 1.5 per cent during the same period.

“I travel to Mombasa twice a month for business, and spending Sh1,500 on a one-way ticket is not sustainable,” said Peter Mwangi, a trader based in Nairobi. “It’s becoming very expensive to move goods and passengers, even though fuel prices haven’t gone up.”

In contrast, fuel costs provided little relief. The average price of petrol eased slightly by 0.5 per cent, from Sh187.37 to Sh186.37 per litre, while diesel prices remained unchanged. Despite expectations that fuel stability would cushion commuters, the gains were overshadowed by fare adjustments.

KNBS data also revealed mixed trends in household spending. Within the food and non-alcoholic beverages category, several essentials recorded price drops, including fresh unpacked cow milk, fortified maize flour, sifted maize flour, beans, loose maize grain, and oranges. Fortified maize flour decreased by 1.7 per cent, while sifted maize flour fell by 1.5 per cent.

However, rising vegetable costs eroded these gains, with cabbages registering the steepest increase at 6.3 per cent. Carrots went up by 2.4 per cent, sukuma wiki (collard greens) by 1.9 per cent, and tomatoes by 1.2 per cent. Prices of other key food items such as white wheat flour, onions, leeks, and potatoes also rose modestly, with increases ranging between 0.7 and 0.9 per cent.

“We are forced to buy less food than before,” said Mary Achieng, a mother of three in Nairobi’s Kayole estate. “Even if milk is cheaper, the high cost of transport and vegetables cancels out any savings.”

For transport operators, the fare hikes were described as a response to other rising business costs. “Spare parts, maintenance, and county levies are not going down. Even if fuel prices remain the same, everything else around the business is more expensive,” explained James Otieno, a matatu driver on the Nairobi–Mombasa route.

The KNBS report ultimately paints a mixed picture of Kenya’s inflation landscape. While stable fuel and cheaper cereals provided some breathing space, higher transport and vegetable prices pushed up the overall cost of living—squeezing household budgets and amplifying concerns over affordability for millions of Kenyans. The Ministry of Transport is yet to comment on the findings.