Little Cab raises base fares after fuel price hike


Little Cab raises base fares after fuel price hike
PHOTO | COURTESY

In Summary

  • Little Chief Executive Officer Kamal Budhabhatti says the marginal Ksh.3 per kilometre hike is expected to cover drivers on its platform against the higher cost of operations from fuel-cost inflation.
  • Players in the Matatu industry have already warned Kenyans to prepare for higher bus fares as the industry struggles to absorb the increase of prices at the pump.
  • In spite of higher and multiple taxes being attached to the premium price of fuel, Government Spokesperson Cyrus Oguna slammed Kenyans on Tuesday urging them to stop complaining about high taxes.

Digital ride hailing company Little Cab has raised its base fares following Sunday’s fuel price hike by the Energy and Petroleum Regulatory Authority (EPRA).

Little Cab Chief Executive Officer Kamal Budhabhatti says the marginal Ksh.3 per kilometre hike is expected to cover drivers on its platform against the higher cost of operations from fuel-cost inflation.

“I am proposing a small increase of Ksh.3 per kilometre on your Little ride. If I have to translate this to real-time figures with some examples, a ride from Westlands to Nairobi CBD would go up by only Ksh.15, Kilimani to Industrial Area would go up by only Ksh.30 more,” he said in an email to users on Tuesday evening.

“Please consider that this small increase which would go a long way to support our drivers to compensate the increase in the fuel price.”

Budhabhatti has nevertheless assured users that the base prices would fall upon a reversal in fuel prices in the coming months.

Little’s move to raise its base costs mirrors the impact of higher fuel prices to the wider economy which further covers electricity costs and production costs for manufacturers.

On Sunday, EPRA’s mid-month review pushed petrol prices per litre past the Ksh.122 mark for the first time ever causing pain and agony to Kenyans.

Players in the matatu industry have already warned Kenyans to prepare for higher bus fares as the industry struggles to absorb the increase of prices at the pump.

In spite of higher and multiple taxes being attached to the premium price of fuel, Government Spokesperson Cyrus Oguna slammed Kenyans on Tuesday urging them to stop complaining about high taxes.

“The amount of taxes those people in Europe pay is nothing compared to what we are paying here. So we are crying when we should not cry. We should be standing firm and support our government. Let’s not cry all the time,” he said.

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