Matatu Fare Increase - Part II

My earlier calculations are apparently correct as regards to the new fare.. ( i think):

5.2% increase in fuel price is correct.

Assuming that

it costs 100 KES in fuel to travel from suburb A to City Centre (probably much cheaper) - prob about 15 km.

an average of 10 passengers travel in this vehicle (usually maaaaaany more).

the fare is 30 bob.

Means the cost incurred per customer / per trip is 10 bob

Profit less other expenses is 20 bob.

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Increase fuel by 5.2% means it costs KES 105.2 in fuel for the same journey

cost incurred per customer / per trip is 10.52 bob

Increase in cost incurred 10.52 - 10.00 = 0.52 bob -> translates to 5.2%

So my earlier calculations are infact correct.

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Bottom line:

Some ma3 owners are now increasing fares by up to 20 bob.

the MWA says fares should not go up by more than 15%. with a minimum of 5 bob and max of 10 bob.

I suggest they stop using the fuel increase as an excuse for increasing fares and look for another way of justifying it

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