Kiharu Member of Parliament Ndindi Nyoro has strongly opposed the securitisation of the Road Maintenance Levy Fund (RMLF), describing it as an “illegal loan” and questioning the lack of documentation in Parliament. He said the arrangement amounts to an “odious debt” that should not be transferred to Kenyans.

Speaking during a television interview on Thursday, May 21, 2026, Nyoro stated that there was no parliamentary record supporting the securitisation process.

“There is no single document anywhere in Parliament in regards to securitisation. It was an illegal loan. We cannot continue to respect odious debts on the basis that the money has already been spent,” he said.

Nyoro’s remarks come amid ongoing public debate over fuel prices and transport disruptions following a nationwide matatu strike triggered by a fuel price review.

RMLF securitisation

Nyoro said he had repeatedly sought documentation on the securitisation of the RMLF but had not received any. “I have asked for it in the committee… There was none,” he said, maintaining that the absence of records undermines the legitimacy of the arrangement.

He argued that portions of the RMLF had been committed to servicing bonds through securitisation, reducing funds available for road maintenance. According to his explanation, future revenues from the levy were pledged to raise upfront financing for infrastructure and pending bills.

The National Assembly’s Parliamentary Budget Office confirmed that Nyoro’s proposals, submitted in a letter dated May 15, 2026, were received and forwarded to the Budget and Appropriations Committee and the Departmental Committee on Finance and National Planning for consideration under Article 114 of the Constitution.

Fuel pricing proposals and levy adjustments

Nyoro has also proposed amendments aimed at reducing fuel prices, including lowering the Road Maintenance Levy by Ksh7 per litre by reverting the 2024 adjustment that increased it from Ksh18 to Ksh25. He has further recommended exemption of petroleum products from VAT and cuts in supply chain profit margins.

He said the combined measures would provide immediate relief to consumers affected by rising fuel costs. Parliament is expected to review the proposals and assess their financial implications on both current and future budgets.

The proposals follow recent increases in fuel prices announced by the Energy and Petroleum Regulatory Authority (EPRA) on May 14, 2026, which raised super petrol by Ksh16.65 and diesel by Ksh46.29 per litre in Nairobi. The adjustments triggered a nationwide transport disruption led by industry stakeholders.

Debt concerns and fiscal implications

Nyoro said securitisation had tied portions of the RMLF to debt obligations, limiting flexibility in road funding. He stated that Sh7 per litre and an additional Sh5 per litre had been committed to servicing bonds raised through the arrangement.

He added that securitisation had generated significant upfront financing, reportedly used to clear pending bills and fund road projects, but warned that it reduces future fiscal space for infrastructure development.

Transport stakeholders suspended a planned strike for seven days following government engagement, pending further discussions on fuel pricing and taxation measures. Parliamentary committees are expected to engage Nyoro on the fiscal implications of his proposals as debate continues on the structure of road financing and public debt management.