In its latest review, Energy and Petroleum Regulatory Authority (EPRA) increased fuel prices with petroleum going up by Sh16.96 per litre, diesel Sh21.32 and kerosene Sh33.13 to sell at Sh211.64, Sh201 and Sh202.13 respectively in Nairobi.
The MOA chairman said just like EPRA blamed the fuel increase on inflation, they also had no option but to increase the fares.
''We as businessmen, as inflation goes up, we also have to increase so that we do not operate at loss,'' said Karakacha.
He said when the fuel goes up, everything including fuel , tyres goes up and they can justify the 20 percent increase.
Karakacha said they have been spending around Sh14,000 to fill a 33-seater tank and with the increase, it will go to around Sh16,000.
''The cost of operating a matatu, which is a 14-seater right now with an increase of around Sh17 for diesel," the Chairman explained.
Thus he appealed to the government to come and sit down with the matatu operators to see how they can reduce the cost of doing business.
Matatu Owners Association chief executive officer Patricia Mutheu said matatu is a key sector that employs many Kenyans and with the rise in fuel, most of the stakeholders might opt out.
''This is a cry to the government that we need a serious national stakeholders meeting on matters of public transport because we are the pushers of the economy and the moment we push the tax increment to the commuters, life becomes unbearable,'' said Ms Mutheu.