Boom in fuel business, Uganda-Kenya borders

Filling stations in Malaba and Busia Kenya-Uganda border towns are enjoying a boom in fuel business as fuel prices skyrocket in Kenya.

This is however experienced only in Uganda side of the borders.

Kenyan motorists flock for fuel in Uganda 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.

In Uganda the two commodities are offered at Sh. 20 below the retail price offered in Kenya.

A litre of petrol is retailing at between KSh.128 and KSh.130 with diesel costing KSh.118 in Kenya and cost KSh.110 (Ush.4080) and KSh.102 (Ush3750) per litre respectively in Uganda.

However, boda-boda operators are complaining 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.

Fuel prices hiked in Kenya since September 1after the directive from the Treasury to raise the tax levied to petroleum products by 16 percent.

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