Competition sends taxi fares tumbling

SOUTHERN PROVINCE HUYE — The decision by SOTRA, a privately owned local transport company, to offer discount on transport charges has forced other companies to lower fares on the Kigali - Butare route.

Thursday, April 10, 2008

SOUTHERN PROVINCE

HUYE — The decision by SOTRA, a privately owned local transport company, to offer discount on transport charges has forced other companies to lower fares on the Kigali - Butare route.

Earlier this week, SOTRA entered an agreement with the National University of Rwanda (NUR) students’ body and University staff to transport them at reduced rates.

On Monday, SOTRA opened up a bureau at the University’s main campus and reduced transport fares from the usual Frw2000 to Frw1600.

The decision forced Volcano express, a company that relied much on the students’ community, to reduce fares to Frw1000 and subsequently raise them to Frw1600 the next morning.

Other transport companies like Horizon Express and ATRACO followed suit and reduced transport fares to Frw1600 and Frw1500 respectively.

SOTRA reduced transport rates further to Frw1300 for University students and staff.

The price war has attracted mixed reactions from commuters on the Kigali – Butare route.

"These are benefits of competition. In the end it is the commuters who benefit," said Johnson Karangwa, a resident of Rango who had just alighted from a Volcano Express bus.

Charles Kalinda, a students’ guild official in charge of Finance and the brain behind the SOTRA arrangement said that the reduction in transport fares has long been overdue.

"We have been thinking about this arrangement since last year. We discussed the arrangement with different transport agencies but SOTRA turned out to be the most willing partner," said Kalinda.

Under the arrangement, SOTRA will undertake to offer a special discount to students and University staff. Fares for the two categories of people will always have to be lower than those being offered by other transport agencies.

Kalinda added that such arrangements have been entered into by students’ associations in different Universities in the region particularly in Uganda and Tanzania.

"We are copying from best practices by other Universities. In fact, some Universities have entered into agreements with Airline Companies to offer Air tickets at reduced prices," said Kalinda.

According to Kalinda, the arrangement largely favours students because their bursary has remained the same over the years and yet transport prices had doubled over the same period.

SOTRA will also undertake to transport students on all its routes in the whole Country. They will also offer special courier services to the University community.

Students who have access to the Government bursary will also have the advantage of travelling on credit after which money will be deducted from their monthly allowances.

"This academic year, we have entered into the third month before students have received their living allowances and yet they are expected to travel in search of different learning materials. The credit arrangement will help such groups of people," said Kalinda.

Olivier Nizeyimana, the proprietor of Volcano express, a Company that boasts of a fleet of over 20 buses are each with 25 seats deferred to talk to this reporter as he was locked in a meeting.

The National University of Rwanda boasts of a student population of close to 10,000 students.

Ends