Even with the Energy and Petroleum Regulation Authority (EPRA) announcing a reduction in fuel prices on Sunday, there is still a puzzle about the increased Road Maintenance Levy Fund (RMLF).
The levy jumped from Sh.18 in the June-July period to Sh.25, despite public opposition and a promise from former Transport CS Kipchumba Murkomen to consider the views of Kenyans.
“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,” Murkomen said on July 8, emphasizing the government’s intention to avoid increasing the levy if it would burden citizens further.
Murkomen highlighted that Kenya is currently facing a Sh.78 billion maintenance deficit for the fiscal year 2024, with projections suggesting this could rise to Sh.315 billion by the fiscal year 2028/2029.
He also pointed out that the country’s road network has grown from 166,451 km in 2016 to 239,122 km now, which requires ongoing maintenance.
“As suggested by Kenyans, 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 reiterated.
The Kenya Roads Board (KRB) proposed three ways to implement the RMLF increase.
One idea was to tie the levy to the cost of fuel imports, meaning the rate would vary with international fuel prices.
Another suggestion was to set the levy in US dollars to protect it from the shilling’s depreciation, though this could lead to fluctuating rates due to changes in US exchange rates.
The third option was to keep the current rate of Sh.18 per litre but increase it by 39% to Sh.25 per litre, with reviews every three years.
The last time the RMLF was reviewed was in July 2016, when it was raised from Sh.12 to Sh.18 per litre.
With the recent changes, consumers in Nairobi will now pay up to Ksh.188.84 for a litre of super petrol, Sh.171.60 for a litre of diesel, and Sh.161.75 for a litre of kerosene.
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