Nairobi — Public Service Vehicle (PSV) operators plying upcountry routes were mulling fare hikes on Saturday in light of an eight per cent increment in fuel prices.

Reacting to revised fuel prices following the coming into force of the Finance Act 2023, operators running bus and shuttle projected fare increments of between Sh100 to Sh200.

Speaking to Capital News, Ena Coach Chief Executive Officer Richard Mogire said price changes may compel the business to adjust fares to cushion themselves from increased operating costs.

"As indicated yesterday we have almost twelve shillings added on diesel and this has been increasing for a while. We have not been pushing this to the customer," he noted.

Mogire said operators who are "squeezed to the corner" may not be able to shoulder the shocks anymore.

"We want to do our calculations and adjust something small to accommodate the operations," he said.

A spot check on various fuel stations across the city revealed service stations had already transitioned from the 8 per cent VAT regime to 16 per cent.

The hike proceed despite a court order on Friday suspending the coming to force of the Finance Act 2023 with fuel station managers saying they are bound by EPRA advisories.

"Fuel has gone up. Vehicle owners have no option rather than abide by the new prices. Despite the court order, we will follow the government directive. Our hands are tied," Joseph Kamau Afya, a station manager at a city outlet told Capital News.

The High Court suspended the implementation of the entire Finance Act 2023, pending the determination of a petition filed by Senator Okiya Omtatah and six other activists in temporary orders issued by Justice Mugure Thande.

The court directed the State to file a response by Tuesday, July 4.