State Seeks Public Input On Plans To Increase Fuel Levy By Sh7 » Capital News

NAIROBI, Kenya, July 8 – The Ministry of Roads and Transport is seeking public views before increasing the fuel levy by Sh7 to Sh25 per liter.

The exercise, which started today, was being done simultaneously in Nairobi, Central, North Rift, South Rift, Upper Eastern, Lower Eastern, Nyanza, North Eastern, and Coast.

Under this, the Ministry is proposing an amendment to the Road Maintenance Levy Fund (Imposition of Levy) Order, 2016 by increasing the Road Maintenance Levy on petrol and diesel.

“In exercise of the powers conferred by Section 3 of the Road Maintenance Levy Fund Act, the Cabinet Secretary for Roads and Transport, in consultation with the Cabinet Secretary, National Treasury is seeking to review the Road Maintenance Levy Fund (Imposition of Levy) Order, 2016,” the Kipchumba Murkomen led Ministry announced in a public notice.

“Pursuant to Article 10 of the Constitution of Kenya on public participation the ministry, through this Notice, hereby invites members of the public and stakeholders to various public participation forums to be conducted on Monday, 8th July 2024 from 9:00a.m. to 5:00p.m.”

Murkomen told the Parliamentary Finance and National Planning Committee last month that the levy was last reviewed in 2016 and thus needs review.

Currently, the levy is set at Sh18 per liter.

The CS said that the hike in the tax will see the government collect an additional Sh32 billion. Now, the fund collects Sh83 billion annually.

Extra cash, he added, will allow the administration to repair and build roads, with a maintenance gap of Sh315 billion between 2023 and 2027 against the projected Road Maintenance Levy Fund.

If the new proposal is passed by MPs, this will push up fuel prices, which currently stand at record highs.

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