The Energy and Petroleum Regulatory Authority (EPRA) has implemented a Sh7 per litre increase in the road maintenance levy, raising it to Sh25 per litre from the previous Sh18. This decision follows a proposal by the Kenya Roads Board (KRB) for a 39% hike to address the funding gap in road infrastructure maintenance.
Former Roads CS Kipchumba Murkomen addressed public concerns about the levy increase impacting fuel prices, reassuring that it would not directly affect consumer costs. EPRA simultaneously announced slight reductions in pump prices: petrol decreased by Sh1, diesel by Sh1.50, and kerosene by Sh1.30, aligning with VAT regulations and excise duty adjustments.
Murkomen emphasized the necessity of the levy adjustment to prevent the deterioration of recently constructed roads. He highlighted the critical condition of many roads under the Low Volume Seal programme, which have gone unattended for a decade and face potential decay without immediate maintenance.
The expansion of Kenya’s road network from 166,451 kilometres in 2016 to 239,122 kilometres underscores the increasing demand for sustained upkeep. Murkomen projected a widening maintenance gap to Sh315 billion by the 2028-29 fiscal year without adequate funding.
EPRA’s decision reflects ongoing efforts to ensure sustainable infrastructure development amidst financial challenges. As discussions continue on future funding and infrastructure maintenance, stakeholders remain vigilant about balancing fiscal responsibilities with public welfare concerns.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
16th July, 2024
