Transport Cabinet Secretary Kipchumba Murkomen Monday explained why the government increased Expressway toll fees.
Murkomen attributed the increased fees to the depreciation of the Kenya Shilling to the United States dollar (USD), adding that the adjustment was done based on the project agreement following the gazettement of the Toll rates in April 2022.
This is despite the project being done under the Build, Operate, and Transfer program.
The government guaranteed minimum annual revenue in dollars. If not raised, the government covers the deficit.
“The formulae for computing the new rates are already embedded in the agreement, taking into account the loan facility provided by the investor, which was borrowed using USD,” he said in a post on X.
Hallo Mhesh, first the increase is not 50%. If you take the maximum increase which is from 360 to 500 you will get a difference of 140 Shillings. if you divide Kshs 140 by Kshs 360 and multiply by 100 you will get 38.89%. Now the last adjustment was done when one dollar was equal… https://t.co/5sinnJQ3td
— KIPCHUMBA MURKOMEN, E.G.H (@kipmurkomen) January 1, 2024
Murkomen said his office and that of the government of Kenya have no discretion but to follow the agreement as established in 2021.
“The good thing about Expressway is first that the government of Kenya did not give a traffic volume guarantee; otherwise, the taxpayer would now be paying a lot from the interest accrued and inflation plus the difference unmet by less traffic flow,” Murkomen added.
“Second, the consumer has an alternative route which is not tolled.”
Murkomen was responding to Alego Usonga Member of Parliament Sam Atandi, who questioned why the government had increased the toll fees by 50 percent.
“Bwana Waziri Kipchumba Murkomen, what is your justification for raising expressway rates by 50 percent?” Atandi asked.
Murkomen said the state had not increased the fees by 50 percent but by 38.89 percent.
“If you take the maximum increase, which is from 360 to 500, you will get a difference of Sh140. If you divide Sh140 by Sh360 and multiply by 100 you will get 38.89%.
Now the last adjustment was done when one dollar was equal to Sh113.14,” Murkomen explained.
“Now the dollar is Sh157, and using the same method, i.e. 157 minus 113, which is equal to 44, Divide 44 by 113 and multiply by 100, and you will get 38.9 %. So the increase is proportional.”
In the new toll fees, charges for Class 3 vehicles (saloons) categorized as light vehicles with two axles are as follows for the following routes:
* Westlands to Mlolongo and Syokimau —-Sh500
* Westlands to JKIA and Easter Bypass —-Sh410
* Westlands to Southern Bypass —-Sh330
* Westlands to Haile Selassie and Capital Centre —-Sh250
* Westlands to Museum Hill —–Sh170
Light vehicles with two axles and high bonnets (Class 4) will pay 1.5 times more.
Heavy vehicles with fewer than four axles (Class 5) will pay four times more.
Heavy vehicles with four or more axles (Class 6) will pay five times.
