Govt to explore alternatives of raising Road Levy without raising cost of living

Govt to explore alternatives of raising Road Levy without raising cost of living

Transport Cabinet Secretary (CS) Kipchumba Murkomen. PHOTO/COURTESY: X/@kipmurkomen

The government will explore other ways of raising the Road Levy without raising the cost of living, Transport Cabinet Secretary Kipchumba Murkomen said on Monday. 

In a media statement, Murkomen said his Ministry would look into alternative ways to secure the resources needed for road maintenance without raising petrol prices, as suggested by citizens. 

He said a decision would be made once there was certainty that any revenue measures adopted would not result in a rise in the cost of living. 

Murkomen said his ministry would review all public responses and make a decision based on the recommendations. 

The CS also thanked Kenyans who had submitted e-mail, social media, and handwritten comments on the proposal 

He said a majority expressed concern that a 39 percent increase in the the levy would exacerbate the cost of living crisis. 

"I thank Kenyans across the country for turning up in large numbers to give their views on the maintenance of our roads," Murkomen stated. 

"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." 

He said Kenya is currently facing a maintenance deficit of Ksh. 78 billion for the fiscal year 2024, with the figure expected to rise to Ksh. 315 billion by the fiscal year 2028/2029.

According to the Transport CS, Kenya's road network has expanded significantly, from 166,451 km in 2016 to 239,122 km currently, necessitating regular maintenance. 

He explained that road maintenance is funded by the Ksh. 18 per liter Road Maintenance Levy

"Most of these abandoned roads are under the Low Volume Seal programme which have never been maintained in the last 10 years and are on the verge of being wiped away altogether," CS Murkomen added. 

"The Roads Maintenance Levy Review is, therefore, intended to fill this gap."

The Transport Ministry had urged the National Assembly's Finance and National Planning Committee to approve a 39 percent increase in the levy from Ksh.18 to Ksh.25, arguing that the current rates, last reviewed in 2016, do not account for inflation in road construction and maintenance costs over time. 


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