Committee Approves Increase in Road Maintenance Levy, Assures No Impact on Fuel Prices
The Committee on Delegated Legislation, chaired by Hon. Samuel Chepkong’a (Ainabkoi), has approved a key legal notice to raise the Road Maintenance Levy Fund rate by Ksh10 per liter for petrol and diesel, from Ksh18 to Ksh28. The new levy is set to take effect under the Road Maintenance Levy Fund (Imposition of Levy) Order, 2024, which was endorsed in a meeting with the State Department of Roads officials on Thursday.
The legal notice, approved by the committee, aims to address the growing road maintenance needs in Kenya as the country’s road network expands. The increase in the levy comes after a period of stagnation since 2016 when the rate was last revised. The current levy generates approximately Ksh80 billion annually, but officials argue that it is insufficient to maintain the increasing road infrastructure.
During the meeting, Hon. Chepkong’a and Committee Vice Chairperson Hon. Robert Gichimu (Gichugu) raised concerns about the potential impact of the proposed levy on fuel prices, noting the strain many Kenyans are already experiencing due to high living costs.
“Given the tough economic conditions, it would be unwise to approve an order that could lead to a rise in fuel prices,” said Hon. Chepkong’a.
Hon. Gichimu also voiced concerns, pointing out that any increase in fuel costs could drive up the price of essential goods, further burdening ordinary Kenyans.
However, responding to these concerns, Principal Secretary (PS) for the State Department of Roads, Joseph Mbugua, assured the committee that the increase in the road maintenance levy would not lead to an increase in fuel prices. He emphasized that the government had measures in place to ensure that the rise in the levy would not affect the retail price of petrol and diesel.
“We want to assure Kenyans that the price of fuel will remain the same. The measures we’ve put in place will ensure the levy increase does not push fuel prices above current levels,” said PS Mbugua.
PS Mbugua explained that the retail price of fuel in Kenya is regulated by the government, and is largely determined by importation costs. The Road Maintenance Levy, which contributes to road upkeep, has not been adjusted since 2016 despite significant growth in the country’s road infrastructure, which has expanded from 161,451 kilometers to 239,122 kilometers in just eight years.
He further noted that the increased levy is necessary to meet the rising demands of road maintenance, as the country’s road network continues to grow and the cost of materials and labor increases.
“The Road Maintenance Levy has remained at Ksh18 per liter since 2016, but the road network has grown significantly. The current levy is no longer sufficient to meet the maintenance needs of this expanding infrastructure,” Mbugua said.
The road maintenance levy, collected from every liter of petrol and diesel, is a crucial component of funding for the Kenya Roads Board and various road agencies, including the Kenya National Highways Authority (KeNHA), the Kenya Rural Roads Authority (KeRRA), and the Kenya Urban Roads Authority (KURA). Despite the approved increase in the levy, Kenyans can expect no immediate changes in the prices at the pump, as the government maintains that the hike will not result in a direct cost burden on consumers.
The Road Maintenance Levy increase is expected to help bridge the funding gap in road infrastructure, ensuring that the growing road network is properly maintained for years to come.
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