Government seeks alternatives for Road Levy to avoid overburdening Kenyans

The Transport Cabinet Secretary Kipchumba Murkomen has announced that the government will explore alternative ways to increase the Road Levy without exacerbating the cost of living.

In a media statement on Monday, July 8, Murkomen noted that the Ministry of Transport is committed to finding a solution that ensures adequate funding for road maintenance while addressing public concerns over petrol price hikes.

Murkomen highlighted that any decision on the Road Levy will be made only when there is assurance that the proposed revenue measures will not lead to an increase in the cost of living.

“From the views we have received, many Kenyans are worried that an increase in the levy will result in a rise in the cost of living.

“With this in mind, we will analyse the reports received on email and social media platforms as well as the submissions made today, and come up with a decision that corresponds with the recommendations from the public,” he declared during the public participation exercise.

The Transport Ministry has been actively engaging with the public to gather their views on the proposal. Murkomen expressed gratitude to Kenyans for their feedback, noting that the majority were concerned about the impact of a 39 percent increase in the levy on the cost of living.

“I thank Kenyans across the country for turning up in large numbers to give their views on the maintenance of our roads,” Murkomen said.

The proposed increase, from Ksh. 18 to Ksh. 25 per liter, was initially suggested to the National Assembly’s Finance and National Planning Committee. The current Road Maintenance Levy, last reviewed in 2016, has not kept pace with inflation and rising costs in road construction and maintenance. Murkomen explained that the increased levy is intended to address a significant funding shortfall for road maintenance.

“We will explore ways of getting the resources we need to maintain roads, as expressed by Kenyans in their numbers, without raising the cost of living through an increase in petroleum prices.”

Transport CS Kipchumba Murkomen, July 8, 2024.

Kenya is currently facing a maintenance deficit of Ksh. 78 billion for the fiscal year 2024, with the figure projected to rise to Ksh. 315 billion by the fiscal year 2028/2029.

The country’s road network has expanded from 166,451 km in 2016 to 239,122 km today, necessitating regular maintenance to ensure safety and usability. Much of the network, particularly roads under the Low Volume Seal program, has suffered from neglect over the past decade.

“Most of these abandoned roads are under the Low Volume Seal program which have never been maintained in the last 10 years and are on the verge of being wiped away altogether,” Murkomen added.

The government’s initial push for a levy increase was driven by the urgent need to bridge the maintenance gap. However, the strong public outcry has prompted a reconsideration. Murkomen assured that the Ministry will review all public responses carefully and base their decision on the recommendations received.

He also acknowledged the economic pressures facing many Kenyans and reiterated the government’s commitment to mitigating these challenges.

In his statement, Murkomen underscored the importance of sustainable road infrastructure for the country’s economic growth and stability.

The Ministry is now tasked with finding a balance between securing the necessary funding for road maintenance and protecting citizens from additional financial burdens. Exploring alternative funding mechanisms is a priority to avoid further straining household budgets while ensuring that the nation’s roads remain functional and safe.

The public consultation process remains open, and Murkomen encouraged continued participation from citizens.

The feedback gathered will play a crucial role in shaping the final decision on the Road Levy. As the government seeks viable alternatives, the Transport Ministry is expected to present a revised proposal that aligns with both fiscal needs and public welfare.

The road ahead involves careful consideration of all options and potential impacts. The Ministry’s efforts to engage with the public and explore diverse funding strategies reflect a commitment to transparency and responsiveness in addressing one of Kenya’s pressing infrastructural challenges.