The Ministry of Roads and Transport under Cabinet Secretary (CS) Kipchumba Murkomen has initiated the process of increasing the Road levy as proposed by the Finance Bill 2024.
In a notice issued to the public, the ministry invited Kenyans to participate in the public participation exercise set to begin on July 8th, 2024.
“The ministry, through this Notice, hereby invites members of the public and stakeholders to various public participation forums to be conducted on Monday, 8 July 2024 from 9.00 am to 5.00 pm,” reads the notice in part.
The Ministry of Roads and Transport has proposed increasing the Road Maintenance Levy on petrol and diesel from Ksh 18 to Ksh 25 per litre.
“The Ministry of Roads and Transport proposes an amendment to the Road Maintenance Levy Fund Act, 1993 by increasing the Road Maintenance Levy by Kshs 7.00, from Kshs 18.00 to Kshs 25.00 per litre of petrol and diesel,” reads part of the notice.
Murkomen Explains Reasons for the increase
Furthermore, the Ministry cited several reasons for the increase, including the rising cost of road maintenance due to inflation, the expansion of the road network, and the lack of sufficient funding for the maintenance of paved rural roads.
Also Read: Kenyans to Pay More for Fuel as Govt Raises EPRA Levy
Murkomen noted that the proposed amendment aims to address the growing financing gap for road maintenance, which is estimated at Ksh 315 billion over the next 5 years.
“Based on the projected RMLF collections, the financing gap for road maintenance over the next 5 years is estimated at Ksh 315 billion.”
Additionally, it was revealed that Kenya’s road network was valued at a staggering Ksh 3.999 trillion.
He also emphasized that investments were necessary so as to protect it from loss of value.
“The value of Kenya’s road network has been established as Kshs 3.999 trillion. This valuable asset requires investments to protect it from deterioration and loss of value.”
Regions where Road Levy public participation Forums Are to Be Held
The ministry has scheduled a series of public forums across various regions aimed gathering the input of citizens and stakeholders on the proposed changes.
Also Read: Fuel Prices Set to Hike After Murkomen’s Proposal
The regions where the forums are to be held include:
- Nairobi 8th Floor, Boardroom, Transcom House (Ministry Headquarters)
- Central- KRB Regional Office, Along Classic Court Junction – Ruringu Police Station Road, Nyeri
- North Rift- KURA Regional Office, Pioneer-Cherunya-Lungas Road, Eldoret
- South Rift- KRB Regional Office 1st Floor, Public Works Building, Nakuru-Sigor Road, Nakuru
- Upper Eastern- KRB Regional Office Off A10 Isiolo-Wajir Road, Isiolo
- Lower Eastern KeRRA Regional Office, Off Makutano Chumvi Machakos. opposite Machakos School, Machakos
- Nyanza – KRB Regional Office Mezzanine Floor, Lake Basin Mall, Kisumu Kakamega Road, Kisumu
- Northeastern KRB Regional Office Off A3-Boys Town Secondary School Road, Garissa
- Coast-KeNHA Regional Office, 2nd floor, Ministry of Public Works Building,Off Shimanzi Road, Mombasa.
- Western- KeNHA Regional Office, Ministry of Public Works Building, Off Kakamega-Nairobi Road, Kakamega
Citizens have been encouraged to submit written comments and memoranda by July 5, 2024.
Murkomen Tables the Proposal to National Assembly
This development comes after CS Murkomen tabled the proposal aiming to increase fuel levy charges to the National Assembly Finance and National Planning Committee.
Murkomen urged the Committee to approve the increase in charges to allow the government to raise money for road maintenance.
“It is concluded that increasing the fuel levy charge from Ksh18 per litre to Ksh25 per litre yields a revenue outcome, which is consistent with halting the increase in the maintenance backlog,” the CS said.
He also argued that the last review in 2016 failed to cover inflation on cost of maintaining roads.
“When the current fuel levy rates of Ksh18 per litre was established in 2016, the pump of petrol in Nairobi was Ksh95. As of May 2024, the pump is Ksh194 while fuel levy remains at Ksh18 per litre.”
“The difference illustrates the loss of purchasing power of the fuel levy over time due to inflation,” Murkomen said.
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