Kenyans might soon face higher fuel prices as the government proposes to increase the road maintenance levy by Sh7 per litre. This change, highlighted in the Finance Bill 2024, was detailed in a report by Finance Committee chair Kuria Kimani.
He explained that the levy, unchanged since 2017, needs revision due to rising fuel prices and deteriorating road conditions.
Currently, the road maintenance levy is set at Ksh.18 per litre of petrol and diesel. The proposed increase to Ksh.25 per litre aims to generate sufficient funds for road network operations and maintenance across the country. This adjustment comes at a time when Kenyans are already struggling with a high cost of living.
The committee argued that the increase is necessary to repair and maintain roads, especially after the recent El Nino-related heavy rains and flooding that have severely damaged road infrastructure, making some routes impassable.
“To help raise sufficient funds to maintain and repair roads across the country, the Committee recommends an increase of the Levy pursuant to Section 3 of the Road Maintenance Levy Fund Act from Ksh.18 to Ksh.25 per litre on all petroleum fuels,” the report states.
Despite the need for increased local revenues for road projects, the Finance Committee noted that the overall budget for the State Department might decrease. Transport CS Kipchumba Murkomen, who lobbied for the increase, emphasized that the current levy does not cover the high costs of road repairs and rebuilding.
The report will now undergo the Parliamentary process, with Members of Parliament set to vote on the bill. If approved, it will be signed into law by the president, potentially leading to higher fuel costs for Kenyans.
