INCREASING FUEL PRICES AFFECT ROAD TRANSPORT IN KENYA

The rates of fuel are ever on the increase. This actually led to the Kenya government coming up with caps that would thus make life a bit easier for vehicle owners. However this eventually led to a slower growth of the road sector and even investors lost a lot of money from the economic recovery as is taking place in the country currently.

Kenya is seeing an impressive growth in the various sectors.
Agriculture, construction and financial sectors in the country have started to boom big time. The growth is definitely impressive with Kenya looking forward to relatively brighter years ahead.

In fact the economic growth increase has reached an impressive 6.1 per cent. None the less the increasing fuel prices have slowed this down and negatively affected the growth. People thus consumed less and there was also a reduced activity.

This has also affected the public transport services deeply. As these services haven’t increased their fares irrespective of the increase in the fuel prices, even the public travel sector is suffering due to this in a nightmarish way. Diesel is the most used petroleum product in the whole of Kenya. It accounts for as much as forty percent.

Petroleum Institute for East Africa (PIEA) states that the transport sector is indeed the largest consumer and the price hike on fuels is bound to affect them the most. Even private car owners have resorted to public transport taking to this and thus trying to deal with the price hikes.

Sh85.60 per litre was the price in June last year which shot up to Sh101 per litre. Post this the price caps were put in place to deal with the hike and eventually however the economical growth was thus affected. Business people thus are also cutting down on their average journeys.

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