Filling stations in Malaba border town, Uganda side are enjoying a boom in business as Kenyan motorists flock for fuel following a price increase of the commodity in Kenya.
Motorists especially boda-boda operators plying their trade in Malaba and Busia towns have since 1st September taken advantage of low fuel prices in Uganda to cushion themselves against the effects of the 16
per cent VAT rise on petroleum products.
Kenyan motorists who are mostly going for petrol and diesel in Malaba Uganda are buying the two commodities at shs.20 below the retail price offered in Malaba Kenya.
In Malaba Kenya a liter of petrol is retailing at between shs.128 and sh. 130 with diesel costing sh.118. In Uganda the two products cost shs.110 (Ushs.4080) and shs.102 (Ush3750) per litre respectively.
Boda-boda operators led by Denis Idewa complained that despite the increase in fuel prices they are finding it hard to increase their charges as most locals have opted to walk or use bicycles rather than pay increased motorbike cost.
The high fuel prices have negatively affected our operations. The prices have increased yet we are finding it hard to charge our customers more, said Idewa
The only option we now have is to continue fueling our motorcycles in Uganda, he said, calling on President Uhuru Kenyatta to intervene and reverse the implementation of the tax.
Source: Kenya News Agency