Despite the recent public participation rejecting increase of Road Maintanance Levy by the Energy and Petroleum Regulation Authority (EPRA), the authority still went ahead and enacted the adjustments.
The levy has surged from Ksh.18 in the June-July cycle to Ksh.25, despite extensive public participation that contested the hike.
Former Transport CS Kipchumba Murkomen had assured the public that any changes would consider the impact on the cost of living.
On July 8, Murkomen said “we will only make this decision when we are certain that any revenue measures adopted will not result in a rise in the cost of living.”
Kenya has a current maintenance deficit of Ksh.78 billion for the fiscal year 2024, with projections indicating it could rise to Ksh.315 billion by the fiscal year 2028/2029.
Former CS stressed that Kenya’s road network has expanded significantly, growing from 166,451 km in 2016 to 239,122 km currently, necessitating regular maintenance.
RMLF Proposal by KRB
The Kenya Roads Board (KRB) had presented three proposals for the RMLF increment.
Also Read: Fuel Price in Kenya Drops in EPRA Monthly Review
The first suggested setting the levy as a percentage of fuel import cost, making it variable based on international rates.
The second proposal was to peg the Fuel Levy rate to US dollars to mitigate the impact of shilling depreciation, though this would cause fluctuations with exchange rate changes.
The third proposal, which was ultimately adopted, was to retain the existing rate (Ksh.18/L) but increase it by 39.0% to Ksh.25/litre, with periodic reviews every three years.
The last review of the RMLF was in July 2016, when it was increased from Ksh.12 to Ksh.18 per litre.
With the new changes in fuel pricing, consumers in Nairobi will now pay a maximum of Ksh.188.84 for a litre of super petrol, Ksh.171.60 for a litre of diesel, and Ksh.161.75 for a litre of kerosene.
The increase in the Road Maintenance Levy Fund has left many questioning the timing and necessity of the hike, especially amid ongoing economic challenges.
