Pain for motorists as agency pushes to increase fuel levy by 30 per cent

Kenyan motorists are set to pay more for fuel as the Government seeks to increase fuel levy by at least Sh3 to bridge road maintenance gap. [PHOTO: FILE/STANDARD]

Kenyan motorists are set to pay more for fuel as the Government seeks to increase the fuel levy charge eroding gains currently enjoyed from falling global oil prices. Kenya Roads Board has proposed an increase in the fuel levy currently pegged at Sh9 per litre by at least 30 per cent in a move meant to raise more funds for road maintenance in the country.

“The estimated annual maintenance costs is Sh40 billion per year and an increase of fuel levy at least by Sh3 is recommended to bridge the maintenance gap,” read a statement from the agency.

Lowest prices

This comes even as motorists continue to enjoy the lowest prices in more than half a decade following the fall of international crude oil prices which have gone down by up to 50 per cent since mid-last year.

In the latest review of fuel price caps in the country, the the Energy Regulatory Commission (ERC) last month claimed that Kenyans are currently paying the lowest amount of money for their fuel and that pump prices are set to go even lower in the coming months.

Motorists in Nairobi currently pay a maximum of Sh92.88 for super petrol with counterparts in Mombasa, Kisumu and Nakuru paying Sh89.57, Sh94.82 and Sh93.61 respectively.

Diesel retails for a maximum of Sh80.06, Sh83.35, Sh85.48 and Sh84.26 in Mombasa, Nairobi, Kisumu and Nakuru respectively.

In its annual public roads programme report for the 2014/2015 financial year which details the planned maintenance and construction of 12,000km, the Government has stated that it lacks adequate funds to execute all the required roadworks.

“Recent studies show that there is a backlog of road maintenance which requires Sh400 billion and that subsequent road maintenance requires Sh50 billion per year,” said Transport Cabinet Secretary Michael Kamau in a statement.

Road network

“This is compared to the annual road maintenance levy fund collections of about Sh25 billion and these figures do not include required investment for the urgent need to expand the road network in Kenya.”

The Government has been forced to find alternative sources of finance key among them the private sector. Last month, the Ministry of Transport kicked off the 10,000km roads programme where over 40 multi-billion shillings road construction tenders will be offered in a new private public partnership formula.

However, it is emerging that individual road users will also have to shoulder part of the burden of financing the country’s multi-billion shillings road projects if the current trends are anything to go by.

The planned increase in fuel levy is just but one of the latest attempt by State to have road users contribute to infrastructure financing.

Two weeks ago, Transport ministry said toll stations would be introduced on major highways like Thika Road, Mombasa-Nairobi and Nairobi-Nakuru highways.