The National Assembly Committee on Delegated Legislation, chaired by Ainabkoi MP Samuel Chepkong’a has approved a key legal notice aimed at increasing the road maintenance levy.
In a meeting with officials from the State Department of Roads, led by Principal Secretary Joseph Mbugua, committee members endorsed the Road Maintenance Levy Fund (Imposition of Levy) Order, 2024.
The approved Legal Notice No. 109 of 2024 proposes raising the Road Maintenance Levy Fund rate by Ksh 7 to Ksh 25 per liter of petrol and diesel.
During the review of the legal notice, Chepkong’a and Committee Vice Chairperson Robert Gichimu (Gichugu MP) expressed concerns about the potential impact on fuel prices.
“Considering the tough economic times, it would be inconsiderate of us to approve an order that could lead to a hike in fuel prices,” stated the legislator.
Gichimu echoed these concerns, adding that any increase in fuel prices would drive up the cost of essential goods and living expenses, which he described as “undesirable during the current difficult times.”
Fuel levy hike won’t change prices, Kenyans assured
But in response, PS Mbugua assured committee members that the proposed levy increase would not affect pump prices for petrol and diesel.
“We are confirming to Kenyans that there will be no increase in the price of fuel. We have measures in place to raise the levy without pushing fuel costs above current levels,” said Eng. Mbugua.
PS Mbugua was accompanied by Director Generals Rashid Mohamed (Kenya Roads Board), Silas Kinoti (Kenya Urban Roads Authority), Ndung’u (Kenya National Highway Authority), and Philemon Kandie (Kenya Rural Roads Authority).
He explained that the state regulates the retail price of petroleum products, with pricing based on import costs.
How much is collected through Road Maintenance Levy?
Currently, the Road Maintenance Levy Fund rate stands at KSh 18 per liter for both petrol and diesel, generating about kWh 80 billion annually—a figure unchanged since 2016 and is insufficient for the country’s growing road maintenance needs.
“Despite the fact that the road network has expanded from 161,451 kilometers in 2016 to 239,122 kilometers in 2024, and economic conditions have changed, the road maintenance levy has remained the same,” he stated.
“That’s why we are seeking a revision of the levy upwards,” PS Mbugua added, justifying the proposed increase.
