More pain for motorists as higher fees loom

Infrastructure Secretary Philemon Kilimo (centre) and Kenya Roads Board Executive Director Jacob Ruwa (right) confer with Bamburi Cement’s Technical Service Engineer Benard Koskei (left) at the Sarova Whitesands Beach Resort and Spa in Mombasa yesterday. This was during the International Transport and Road Research Conference and Exhibition 2016. [PHOTO: MAARUFU MOHAMED/STANDARD]

Motorists may have to pay more for fuel as the Government seeks more road maintenance funds, it was revealed yesterday.

The Kenya Roads Board (KRB) has proposed an increase in the fuel levy, currently pegged at Sh9.18 per litre to Sh12.24 per litre of petrol or diesel.

The recommendation is part of new charges that KRB is pushing to raise more funds for road maintenance.

The plan to raise the levy was first made in June last year but the Government has not implemented it for fear of higher transport costs and the ripple effect it would have on essential goods. KRB says the Sh3.06 increase will be used for the Road Annuity Programme while Sh9.18 per litre will be utilised for road maintenance.

"The Government is yet to act on our proposal to raise the fuel levy. But we strongly believe the benefits to be accrued from good road networks outweigh the impact of the new levies," said KRB Executive Director Jacob Ruwa.

He said the agency projects this will raise Sh8.16 billion under the Road Annuity Programme and Sh30.6 billion from the normal fuel levy. According to estimates, the Government requires more than Sh408 billion to clear the current road maintenance backlog.

The roads agency also plans to raise $500 million (Sh50.7 billion) through an infrastructure bond. KRB said it was awaiting approval from the National Treasury.

While attending the International Transport and Road Research Conference and Exhibition in Mombasa, Mr Ruwa said KRB has proposed new road user charges or tariffs, among them the weight or mass distance charges, public roads levy, private motor inspection levy, international transit fees and road tolling.

"Public roads levy will be charged as an annual levy on all motor vehicles in the country and collected by insurance companies and their agents at the point of underwriting of motor vehicle policies. It will be used to maintain road furniture such as street lighting and guard rails," said Ruwa.

He said the Private Motor Inspection Levy would be charged annually on motor vehicles that are more than three years old with the exception of commercial vehicles. Others are road tolling and concession to be introduced on high traffic roads or bridges to ensure long-term maintenance of the said networks.

Ruwa said the proposed levies arose from studies conducted and that the recommendations have been presented to the Ministry of Transport, which will then forward to the National Treasury for approval.