My earlier calculations are apparently correct as regards to the new fare.. ( i think):
5.2% increase in fuel price is correct.
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.
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.
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
Blogged with Flock