The Energy and Petroleum Regulatory Authority (EPRA) has announced an increase in the Road Maintenance Levy from Ksh18 to Ksh25.
This comes days after former Transport Cabinet Secretary Kipchumba Murkomen announced that the government would first listen to people’s views before increasing the levies.
On Sunday, July 14, 2024, EPRA announced new prices and taxes which saw the maximum allowed petroleum pump price for super petrol, diesel and kerosene go down by Ksh1, Ksh1.50 and Ksh1.30 per litre respectively.
Super petrol, diesel and kerosene will now retail at Ksh188.84, Ksh171.60 and Ksh161.75 per litre respectively in Nairobi starting midnight.
According to revelations by EPRA, for every Ksh188.4 Kenyans pay for a litre of petrol, Ksh82.74 will to the government as levies and taxes. For diesel, for every Ksh171.6 paid, Ksh69.61 will go to levies and taxes. For kerosene, for every Ksh161.75 paid, Ksh56.34 will go to taxes.
Murkomen’s promise on levy
While still serving as the Cabinet Secretary for Roads and Transport, Murkomen said Kenya has a Ksh78 billion road maintenance deficit.
Speaking during a public participation forum on Monday, July 8, 2024, Murkomen observed that there had been a significant increase in road infrastructure from 2016 when the road network covered 166,451 kilometres to 239,122 kilometres in 2024.
“As a country, we are grappling with a maintenance deficit of Ksh78 billion this financial year alone. With the current trend, it is projected that by the financial year 2028/2029, this financing gap will rise to Sh315 billion,” Murkomen said.
The CS noted that the road maintenance levy of Ksh18 per litre of diesel and petrol, which has been in place for the last eight years, would need a review if the deficit is to be plugged.
“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,” Murkomen added.
He assured Kenyans that the Transport Ministry would ensure the revenue measures adopted in the collection of road maintenance levy would not increase the cost of living.
“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,” the CS assured.
Earlier, the Kenya Roads Board suggested that the road maintenance levy be reviewed upwards by Ksh7 to Ksh25 from the current Ksh18 per litre of diesel or petrol.