Transport Cabinet Secretary Davis Chirchir has painted a grim picture of the country’s capability to complete the ongoing road projects.
Appearing before the National Assembly on Wednesday, September 18, 2024, CS Chirchir told the lawmakers that some road projects could take even 15 years before they are completed.
The CS highlighted the issue of budget inadequacies which he argued remain the biggest challenge to the completion of the projects.
According to CS Chirchir, the average annual net government development budget for roads is Ksh55 billion whereas the outstanding commitments on contracted projects stands at Ksh700 billion.
The CS further told the MPs that the unpaid bills in the road sector is about Ksh165 billion.
“Based on current budget allocations, completing these projects could take 15 years,” CS Chirchir told the MPs.
He attributed the funding gap to changes in the road network, macroeconomic factors and increased maintenance needs.
The Ministry thus proposed a review to increase the Road Maintenance Levy by Ksh7, raising it from Ksh18 to Kshs 25 per litre to partially cover the deficit.
Despite numerous court battles challenging the increase, CS Chirchir told the MPs that raising the levy is the viable option of helping to complete the road projects.
He clarified that the Road Maintenance Levy Fund (RMLF) was established in 1993 to provide sustainable resources for road maintenance. The last adjustment to the fuel levy was made in 2016, setting it at Ksh18 per litre. However, by 2024, a large funding gap had emerged between the cost of essential road maintenance and the revenue collected from the fuel levy.
“By way of example, for the 2024/2025 financial year the cost of essential road maintenance activities for national roads is Ksh157 billion. However, the anticipated fuel levy collection for the same financial year is Ksh79 billion, leaving a deficit of Ksh78 billion,” the CS said.
Chirchir also highlighted that the Ministry has been unable to perform all necessary maintenance due to this gap.
Total assets
Further, CS Chirchir revealed that the total value of public road assets across the country has been established at Ksh4 trillion by the Road Sector Investment Programme (RSIP 2023-2027), making it one of Kenya’s largest public investments.
“This massive investment in road assets, which has been built up painstakingly over the years, has to be diligently maintained, protected and preserved to ensure it serves the citizens well while achieving maximum service life, return on investment and value for money,” Chirchir stated.
