By Jehoshaphat Kanyoro Njaro
Kenyans could soon face higher fuel prices following the government’s proposal to increase the road maintenance levy by Ksh.7 per litre.
This development is outlined in the Finance Bill, 2024, as presented by Finance Committee Chair Kuria Kimani.
Kimani highlighted that the road maintenance levy, which currently stands at Ksh.18 per litre for petrol and diesel, has not been revised since 2017. Despite rising fuel costs over the years, the levy has remained static.
The proposed increase to Ksh.25 per litre aims to generate additional funds necessary for the upkeep and repair of the nation’s road network.
The road maintenance levy, collected at the pump, is crucial for financing road operations and maintenance.
The committee’s report underscores the urgency of the increase, noting that the recent heavy rains and flooding linked to the El Niño phenomenon have significantly damaged infrastructure, rendering some roads impassable.
“To ensure adequate funding for road maintenance and repairs across the country, the Committee recommends increasing the levy pursuant to Section 3 of the Road Maintenance Levy Fund Act from Ksh.18 to Ksh.25 per litre for all petroleum fuels,” the report states.
Transport Cabinet Secretary Kipchumba Murkomen supported the proposal, arguing that the current levy rate does not align with the rising costs of road repairs and reconstruction.
He emphasized that without the increase, maintaining and improving the road network would be challenging.
While the proposed hike aims to bolster local revenues for road projects, the committee also noted that the overall budget for the State Department may see a reduction.
This adjustment reflects broader fiscal constraints facing the government.
The Finance Bill, 2024, will now proceed through the parliamentary process, where members will debate and vote on the proposal.
If approved by Parliament, the bill will be signed into law by the President, formalizing the levy increase and potentially leading to higher fuel prices for Kenyan consumers.
The proposed levy increase comes at a time when Kenyans are already grappling with a high cost of living, and the additional burden on fuel prices is likely to impact various sectors of the economy.
The outcome of the parliamentary vote will be closely watched by all stakeholders.