Matatu operators have issued a 7-day strike notice slated to start on Saturday July 20 over increased Road Maintenance Levy.
The increase came was effected by the Energy and Petroleum Regulatory Authority (EPRA) on July 14 when it reviewed fuel prices for the July – August cycle.
EPRA hiked the levy from Ksh.18 per liter to Ksh.25 per liter in the latest review at a time when the country is grappling with the high cost of living.
The matatu operators have opposed the move to hike the levy, terming it illegal and discriminatory as it did not undergo public participation or parliamentary legislation.
They questioned why the government would hike the levy despite strong rejection from the public.
“Motorists Association of Kenya is opposed to the mid-July to August fuel prices where the Road Maintenance and Fuel Levy has been escalated from Ksh.18 per litre to Ksh.25 per litre despite submitted objections from the stakeholders and the general public,” the statement read in part.
EPRA increased the levy by 35% despite earlier reassurance by the government that it would consider not raising the levy following public uproar from Kenyans.
Also Read: EPRA Reduces Fuel Prices for July & August Cycle
Matatu Operators Oppose the Hike
The association noted that fuel prices would significantly rise once the landed cost is increased.
“Fuel pump prices should be Ksh.7 cheaper now something the EPRA has failed to do,” the association added.
The association further revealed that the Road Maintenance and Fuel Levy Audit found no roads were constructed or repaired using the funds collected over the past year.
“The expansion of the road network from gravel and earth roads to bitumen from 161,451 Kilometers to 239, 122 Kilometers in the last 10 years today has reduced regular expensive grading significantly since bitumen requires little to no maintenance. Fuel pump prices should be Ksh 7 cheaper now something the EPRA has failed to do,” it added.
Following the increase, EPRA will now collect Ksh115 billion per year which will be used to repair existing roads.
Murkomen and Ruto Speaks on the Levy
Former Transport Cabinet Secretary Kipchumba Murkomen before his dismissal from Cabinet had promised that the government would explore other funding options.
Murkomen on July 10 gazetted the increase of the levy by Ksh.7 per litre making it the first time the levy was hiked since 2016.
According to Murkomen, it was unreasonable for the government to spend billions of shillings constructing roads and fail to maintain them.
Also Read: Ruto Speaks on Increased Road Maintenance Levy After Public Uproar
He explained that the intended fuel levy was the government’s plan to raise the maintenance deficit of Ksh.78 billion for the financial year 2024/2025. According to Murkomen, the figure is expected to rise to Ksh.315 billion by FY 2028/2029.
President William Ruto on Monday July 15 justified the increase, maintaining that the government was keen on making sure Kenyans enjoy good roads.
“We have made a significant progress as government and have made sure that we collect enough money raised from fuel levy so that we finish the roads that are currently stalled and those that have potholes, for transport to run smoothly. We also made sure that the fuel levy doesn’t affect Kenyans as the prices at the pump,” he said.
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