Roads agency defies fuel tax to collect Sh33.4b in six months

Pump attendant serves a vehicle at a fueling station in Kisumu on September 02,2018. Fuel prices that have gone up are likely to affect transport costs across the country. [Photo: Denish Ochieng/ Standard]

Despite the punitive eight per cent value-added tax on fuel products, the Government collected Sh33.4 billion from motorists for maintenance of roads in the first half of the year.

The Kenya Roads Board (KRB) said it disbursed the bulk of the funds - Sh12.7 billion - to the Kenya National Highway Authority (KeNha) which is responsible for the management, development, rehabilitation and maintenance of major roads in the country.

In the 2017/18 financial year, the board disbursed Sh51.2 billion to various road agencies, including KeNha, Kenya Urban Roads Authority (Kura), county governments and the Roads and Infrastructure Ministry raised from the Road Maintenance Levy.

The board said in a press notice yesterday it expects to surpass the Sh60 billion mark this financial year for the first time.

According to the Kenya National Bureau of Statistics, diesel consumption in the country stood at 162,570 metric tonnes in September last year when the new fuel tax took effect, which was a 23.4 per cent decline, compared with 212,370 metric tonnes used in August.

A 26 per cent decline was also seen in the uptake of super petrol at 92,880 metric tonnes in September from 126,000 tonnes consumed in August.  However, a decline in the global price of crude oil might have led to increased consumption in the remaining four months.

According to KRB, Kura received Sh8 billion while the Ministry of Transport, Infrastructure, Housing and Urban Development received Sh4.8 billion for emergencies and roads under the Road Sector Investment Programme aimed at improving the quality road networks.

County Governments, on the other hand, pocketed Sh4.1 billion for the repair of county roads from the Road Maintenance Levy Fund.

“Kenya Roads Board has disbursed Sh33.4 billion towards maintenance of various roads in the country for the period July to December 2018,” read a statement by Kenya Roads Board.

Besides the Road Maintenance Levy, the funds also comprised of transit tolls.

Kura received Sh3.4 billion for maintenance of urban roads, with Kenya Wildlife Service receiving the least amount at Sh227.9 million for repair of national park roads.

KRB Executive Director Jacob Ruwa said the money, mobilised through the Annual Public Roads Programme (APRP), was given to all compliant road works as per the Annual public Roads Programme for the 2018/19 financial year.   A consolidated Annual Publics Road Programme 2018/2019 is provided, detailing allocation of KRB Fund to agencies and their work plans.

The agency expects to receive Sh68.9 billion, with Sh68.4 billion comprising proceeds of the Road Maintenance Levy Fund and Sh550 million from transit tolls. “In this APRP, a total of 80,637km have been planned for, routine maintenance on 59,490 Km, periodic maintenance on 1,476km, performance-based maintenance contracts on 7,099km and spot improvement on 12,573km of roads spread across the country,” said KBR in its Annual Public Roads Programme for the 2018/19 financial year.

The projected collection of Sh68.9 billion, said the board, is still inadequate for road maintenance as there is a backlog in maintenance running into Sh11.18 billion.