KRB seeks additional funds

By  Macharia Kamau

The Kenya Roads Board is seeking alternative revenue streams to meets its annual requirements for road maintenance in the country

The Board requires 40 per cent more than its annual allocation by the ministry of Finance. It got Sh25 billion from The Treasury during the current financial year, but said it needed Sh40 billion for the maintenance of roads across the country.

The money advanced to the Board is meant for maintenance and is collected through the Roads Maintenance Levy Fund.

KRB  Executive Director Francis Nyangaga, said the Board is exploring ways to grow revenue from agricultural produce cess – mostly cash crops and is considering to re-introduce toll stations on certain roads. Last year, the Board collected Sh300 million from transit tolls, and Sh75 million from agricultural cess.

Other possible options include bringing the private sector on board through Public Private Partnerships. This would entail building and maintenance of roads through Build Operate Transfer methodology, concessioning road segments to private firms for maintenance and rehabilitation, or raising money through infrastructure bonds. Nyangaga, however, said KRB is in the early stages of crafting a framework for acquiring additional funds, and nothing conclusive has been arrived at.

“This year we had a Sh15 billion deficit, and hence we have to look at ways through which we can bridge the difference between the Sh25 billion we get from the Government and the Sh40 billion that we need for road maintenance.”

Sharing the cake

Motorists pay a fixed Sh9 per litre that goes to the road maintenance kitty. This money is then advanced to Kenya National Highways Authority (40 per cent), Kenya Rural Roads Authority (32 per cent) and the Kenya Urban Roads Authority (15 per cent).

A further one per cent is given to the Kenya Wildlife Service for repair of park roads, while ten per cent is used in a roads investment programme.

Two per cent is used by KRB for administrative purposes.