Committee approves road levy increase; Kenyans assured of no hike in oil prices

The Committee on Delegated Legislation, chaired by Hon. Samuel Chepkong’a (Ainabkoi), has approved a key legal notice aimed at enhancing the road maintenance levy.

Members of the Committee today endorsed the Road Maintenance Levy Fund (Imposition of Levy) Order, 2024, during a meeting with officials from the State Department of Roads led by PS Joseph Mbugua.

Legal Notice No. 9 of 2024, approved by the MPs, seeks to increase the Road Maintenance Levy Fund rate from Ksh 18 to Ksh 28 per litre of petrol and diesel.

During the scrutiny of the legal notice, Hon. Chepkong’a and Committee Vice Chairperson Hon. Robert Gichimu (Gichugu) led the House Team in expressing concerns about whether the enactment of the legal notice would raise the overall price of fuel.

“Considering the tough economic times, it would be inconsiderate of us to approve an order that will lead to a hike in fuel prices,” said Hon. Chepkong’a.

Hon. Gichimu expressed similar sentiments, noting that an increase in fuel prices would result in a spike in food prices and the cost of living, which he deemed undesirable during these difficult times.

In response to the concerns of the Committee members, PS Mbugua assured them that the proposed hike in the fuel levy would not increase the pump prices of 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 increase the levy without raising the cost of fuel beyond the current prices,” reassured Eng. Mbugua.

The PS 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 retail price of petroleum products is regulated by the state, with the price control mechanism being based on import prices.

According to the State Department, the current collection rate for the Road Maintenance Levy Fund stands at Ksh 18 per litre of both petrol and diesel.

The collected amount has stagnated at Ksh 80 billion per year since 2016, a sum that is inadequate to rehabilitate the country’s roads.

“Despite the fact that the road network has grown in length from 161,451 km in 2016 to 239,122 km in 2024, and economic conditions have changed, the amount of the road maintenance levy has not changed. That’s why we are seeking a revision of the levy upwards,” he explained, justifying the hike.