House Committee Seeks Answers from Transport CS on Road Maintenance Levy Fund Implementation
The National Assembly Departmental Committee on Transport and Infrastructure, led by Hon. George Kariuki, met with Transport Cabinet Secretary David Chirchir on Tuesday to review the status of the Road Maintenance Levy Fund (RMLF) for the 2023/24 financial year. The meeting focused on the allocation and disbursement of funds to key agencies, including the Kenya Rural Roads Authority (KeRRA) and the Kenya Urban Roads Authority (KURA), as well as the implementation of road maintenance projects across the country.
A primary concern raised by lawmakers was the allocation of 22%, 10%, and 15% of the RMLF for the current financial year. MPs sought clarification on how funds had been disbursed to the relevant agencies and regional offices, and whether there were any discrepancies in the release of funds for road projects.
CS Chirchir explained that due to a shortfall in RMLF collections, the initial budget of Ksh 87.47 billion for FY 2023/24 had been revised downwards to Ksh 78.70 billion. The Kenya Roads Board (KRB) collected Ksh 77.19 billion, resulting in a deficit of Ksh 1.51 billion. Despite this shortfall, the CS stated that the full allocation had been disbursed by utilizing interest accrued during the year. However, MPs, including Wajir North MP Hon. Saney Ibrahim, questioned the source of the interest and requested a detailed breakdown of the amounts earned.
Lawmakers also raised concerns about the transparency of interest earnings, with some questioning why agencies were holding large sums of money in banks to generate interest. The CS acknowledged these concerns and promised to address them in future reports.
The meeting also touched on the allocation to KeRRA, with Ksh 5.5 million allocated per constituency based on the original estimates. However, Nakuru Town West MP Hon. Arama raised concerns over delays in payments, which had resulted in the abandonment of some projects and difficulties for contractors. The CS assured the Committee that steps would be taken to expedite payments and prevent further project delays.
Further scrutiny was directed at KeRRA’s financial management, with the Committee noting that the authority had retained Ksh 3.85 billion for operations and administration while disbursing Ksh 17.17 billion to regional offices. The MPs expressed dissatisfaction with the lack of detailed reports on per-constituency disbursements and requested more transparency regarding the breakdown of expenditures.
Another point of contention was the Ministry’s claim of interest earnings and the absence of savings in the fund. Lawmakers pointed out that tender bids rarely exceeded budgeted amounts, and questioned why there appeared to be no savings. In response, CS Chirchir agreed to provide further documentation on the fund’s savings and detailed budget reports at the next meeting.
The Committee’s concerns highlight ongoing issues with the disbursement and management of the Road Maintenance Levy Fund, which is critical for maintaining and improving Kenya’s road infrastructure. The CS’s commitment to addressing these concerns signals a potential shift toward greater transparency and efficiency in the use of public funds.
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