Africa-Press – Kenya. The Kenya Roads Board (KRB)has proposed that the road maintenance levy be increased by Sh5, tipping the country for higher fuel costs if approved.
The board wants the levy, commonly referred to as the Roads Maintenance Levy Fund (RMLF increased to cater for inflation in the cost of road construction materials.
The RMLF tax is collected at the fuel pump and is currently set at Sh18 per litre of petrol and diesel.
The KRB is proposing that the changes take force in 2025.
Of this, Sh3 is allocated to the annuity fund while the remaining amount is set aside for road maintenance, rehabilitation and development.
If KRB’s proposal sails through Parliament, then Kenyans see the levy raised from Sh18 to 23 per litre of fuel at the pump further soaring the cost of living.
“Recommend and lobby for a review of RMLF rate…. Increase of RMLF rate by Sh5,” KRB said in its work plan for the period 2023-2027.
In defending its proposal to increase the RMLF, the board noted that while the price of petrol and diesel has been rising since 2020, the fuel levy has remained constant at Sh18 per litre.
This is despite the increased demand for better roads.
The Kenya Roads Board is the state arm that maintains roads and is financed mainly by the RMLF as well as transit tolls.
The KRBF shares resources with various agencies and the county government charged with maintaining certain classes of roads.
They include the Kenya National Highways Authority (Kenha), Kenya Urban Roads Authority (Kura), Kenya Rural Roads Authority (Kerra), Kenya Wildlife Services (KWS), and the county governments.
In the five years from 2018–2022, KRB spent Sh309.74 billion on road maintenance, rehabilitation, and development programmes, excluding the Road Annuity Fund.
These amounts consisted of Sh128.37 billion to KeNHA, Kerra (84.95 billion), Kura (Sh35.24 billion), KWS (Sh31.36 billion), county governments (Sh26.69 billion) and a Sh31.36 billion allocation through the Transport Cabinet Secretary.
KRB noted in its strategic plan that the cost of maintaining roads in the country has gone up because of costlier fuel prices and the cost of key road construction materials.
According to the KRB, the cost of periodic maintenance per kilometre is expected to move rise from Sh3.94 million to Sh6.06 million in the current financial year.
KeNHA is expected to spend an estimated Sh1 billion on the periodic maintenance of 166 kilometres of paved road surfaces.
Routine maintenance and spot improvement by the agency will, meanwhile, cost three times as much or Sh3.1 billion and will touch on 717.3 kilometres of roads.
The bulk of Kenha’s road maintenance budget at Sh14.4 billion will be handled under performance-based contracting where most risks are transferred to the contractor.
KRB has allocated KeNHA Sh33.6 billion in the current financial year for road works.
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