The Energy and Petroleum Regulatory Authority (EPRA) has announced an increase in the Road Maintenance Levy from Ksh18 to Ksh25. This decision follows former Transport Cabinet Secretary Kipchumba Murkomen’s recent statement that the government would consider public views before any levy increases.
On Sunday, July 14, 2024, EPRA unveiled new prices and taxes, resulting in a slight decrease in the maximum allowed prices for super petrol, diesel, and kerosene by Ksh1, Ksh1.50, and Ksh1.30 per litre respectively. As of midnight, these fuels will retail in Nairobi at Ksh188.84 for super petrol, Ksh171.60 for diesel, and Ksh161.75 for kerosene.
EPRA disclosed that significant portions of these prices include government levies and taxes: Ksh82.74 per litre for super petrol, Ksh69.61 per litre for diesel, and Ksh56.34 per litre for kerosene.
Murkomen, in his capacity as the former Cabinet Secretary for Roads and Transport, highlighted Kenya’s Ksh78 billion road maintenance deficit. During a public participation forum on July 8, 2024, he noted substantial growth in Kenya’s road infrastructure, expanding from 166,451 kilometres in 2016 to 239,122 kilometres by 2024.
“As a country, we are grappling with a maintenance deficit of Ksh78 billion this financial year alone. With the current trend, it is projected that by the financial year 2028/2029, this financing gap will rise to Sh315 billion,” Murkomen said.
The CS noted that the road maintenance levy of Ksh18 per litre of diesel and petrol, which has been in place for the last eight years, would need a review if the deficit is to be plugged.
“From the views we have received, many Kenyans are worried that an increase in the levy will result in a rise in the cost of living. With this in mind, we will analyse the reports received on email and social media platforms as well as the submissions made today, and come up with a decision that corresponds with the recommendations from the public,” Murkomen added.
He assured Kenyans that the Transport Ministry would ensure the revenue measures adopted in the collection of road maintenance levy would not increase the cost of living.
“We will explore ways of getting the resources we need to maintain roads, as expressed by Kenyans in their numbers, without raising the cost of living through an increase in petroleum prices,” the CS assured.
Earlier, the Kenya Roads Board suggested that the road maintenance levy be reviewed upwards by Ksh7 to Ksh25 from the current Ksh18 per litre of diesel or petrol.
