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Kenya Roads Board (KRB) yesterday conducted public participation for the review of the Road Maintenance Levy Fund (Imposition of Levy) Order, 2016 in different parts of the country.

 The Board has proposed to amend the order by increasing the Road Maintenance Levy on petrol and diesel from the current Sh18 to Sh25 per litre of the two types of fuels.

 Among the reasons given by KRB to increase the levy by Sh7 per litre include raising resources needed for the maintenance of the country’s road network. “The value of the road network established is Sh4 trillion. There is a need for further investments to protect the road asset from deterioration and loss of value,” KRB indicated.

 According to the board, the financing gap for road maintenance over the next five years is expected to grow to Sh315 billion.

 Documents seen by The People Daily indicate that in the financial year 2024/2025, the projected budget allocation is Sh79 billion against an annual requirement of Sh157 billion.  If the proposed increase is implemented, KRB estimates that the annual revenue collected through the levy will increase to Sh115 billion, further reducing the current deficit.

 This will however have a direct impact on Kenyans as the fuel prices will increase with a corresponding amount to the levy, overburdening an already restless population.

Operating costs

 The government however defends the increase citing that good roads will enhance mobility and reduce some costs on motorists.  “Improved road network will reduce vehicle operating costs and enhance transport efficiency that spur economic growth,” KRB states.

 It continues to state that “The multiplier effects of government expenditure will in the long term exceed the tax effect on consumption and investment.”

 At the South Rift KRB offices in Nakuru, only a few Kenyans turned up for the public participation forum where they were given documents indicating the proposed changes.

 Those who participated were required to give their feedback through written memoranda, some of them questioning the rationale of increasing the levy.

 David Njuguna, a Nakuru resident said that KRB should interrogate its expenditure first before implementing the proposed changes.

“There is a lot of wastage of resources collected under the Ministry of Transport and its road agencies which should be addressed first,” said Njuguna.