The House team has approved the Road Maintenance Levy Fund (Imposition of Levy) Order, 2024, which proposes an increase in the Road Maintenance Levy rate from Sh18 to Sh25 per litre of petrol and diesel. However, this increase will not affect fuel prices, thanks to assurances from the government that the levy hike will not lead to higher costs at the pump.
The approval was granted after the Committee on Delegated Legislation, chaired by Ainabkoi MP Samuel Chepkong’a, thoroughly reviewed the proposal. The committee had previously expressed concerns about the potential impact of higher fuel prices on the cost of living, especially during these tough economic times.
Chepkong’a emphasized that increasing fuel prices would be inconsiderate, considering the current financial strain on Kenyan citizens. His sentiments were echoed by Robert Gichimu, the committee’s vice-chair, who pointed out that higher fuel costs would likely cause a spike in food prices and overall living expenses.
The State Department of Roads, led by Principal Secretary Joseph Mbugua, assured the committee that while the levy will increase, fuel prices will not rise. Mbugua clarified that the government had measures in place to adjust the levy without causing any increase in the cost of petrol or diesel.
PS Mbugua in response to the concerns of the Committee members assured them that the proposed hike in fuel levy will not increase the pump prices of petrol and Diesel.
“We are confirming to Kenyans that there will be no increase in price of fuel. We have measures in place to increase the levy without increasing the cost of fuel beyond the current prices,” he reassured.
Mbugua also explained that the current road maintenance levy, which has been stagnant at Sh18 per litre since 2016, has not kept up with the growing road network, which has expanded from 161,451 km in 2016 to 239,122 km in 2024.
The government hopes to generate Sh115 billion by June next year from the increased levy, up from the current Sh80 billion collected annually. This increase is expected to help maintain and rehabilitate the country’s roads, as the previous levy amount has been insufficient to meet the growing needs of road maintenance.
According to the ministry, the inflationary environment and the Kenyan shilling’s value depreciation to the dollar, continued to impact construction materials used in road works, the majority being imported.
