The Kenya Roads Board (KRB) conducted public participation sessions across Kenya to review the Road Maintenance Levy Fund (Imposition of Levy) Order, 2016.
KRB has proposed amending the order to increase the Road Maintenance Levy on petrol and diesel from Sh18 to Sh25 per litre. The board cites the need to raise resources for maintaining the country’s Sh4 trillion road network and to bridge a projected financing gap of Sh315 billion over the next five years.
In the upcoming financial year 2024/2025, the budget allocation for road maintenance is projected at Sh79 billion, while the annual requirement is Sh157 billion. KRB estimates that increasing the levy will boost annual revenue collection to Sh115 billion, reducing the current deficit.
Implementing the proposed increase will directly affect Kenyans by raising fuel prices correspondingly with the levy, which may burden the population already facing economic challenges.
Government Justification
The government defends the increase, arguing that improved roads will lower vehicle operating costs, enhance transport efficiency, and stimulate economic growth. KRB asserts that the long-term benefits of improved infrastructure will outweigh the immediate impact on consumption and investment.
At the South Rift KRB offices in Nakuru, few residents attended the public participation forum. Participants were invited to provide feedback through written memoranda, with some expressing skepticism about the rationale behind the levy increase.
David Njuguna, a Nakuru resident, emphasized the need for KRB to address wastage in Ministry of Transport expenditures before implementing the proposed levy changes.
