Raise transportation costs, association tells members nationwide
The Kenya Transporters Association (KTA) has asked its members across the country to raise freight charges by at least 5%.
This follows Monday’s fuel cost hike, association president Newton Wang’oo said in a statement dated March 14, 2022.
A liter of petrol and diesel increased by 5 shillings each to sell for 134.72 shillings and 115.60 shillings respectively in Nairobi.
The price of a liter of kerosene, however, remained unchanged in Monday’s balance sheet.
The Kenya Transporters Association has therefore asked its members to pass on the higher cost to the consumer so that their profit margins are not significantly affected.
“Fuel costs account for up to 35 percent of total direct transportation costs and indirectly affect other costs such as importing tires and spare parts,” said association president Netwon Wang’oo. .
“Transport tariffs have remained constant since the period when diesel pump prices in Mombasa were between 75 and 80 shillings per litre, compared to the current 108 to 110 shillings per litre. Carrier margins can no longer support increased costs and unfortunately must pass this increase on to freight owners for the road transport industry to survive,” he said.
Describing the Sh5 increase in fuel prices as having “negative” effects on transport costs, Wang’oo ordered its members across the country to increase freight transport costs.
“KTA would like to advise carriers across the county to increase their transportation fares by at least 5% to support their businesses under the current circumstances and avoid a total collapse of their businesses,” the KTA chairman said.
The association states on its website that it advocates for transportation policies that increase investment in freight transportation and improve the profitability of the trucking industry.
It costs between 80,000 and 100,000 shillings to transport a 20ft container using trucks between Mombasa and Nairobi. A 5% increase in the charge would mean that transporting the same 20ft container between the two cities by road would cost between 84,000 and 105,000 shillings.