Kenya: EPRA Increases Road Maintenance Levy By Sh7 to Sh25

15 July 2024
Capital FM (Nairobi)
By Kevin Rotich

Nairobi — The Energy and Petroleum Regulatory Authority (EPRA) has increased the Road Maintenance Levy by Sh7 to Sh25 despite public criticism of the new tax.

Only last week did the Ministry of Roads and Transport seek public views before increasing the fuel levy by Sh7 to Sh25 per liter.

The exercise was being done simultaneously in Nairobi, Central, North Rift, South Rift, Upper Eastern, Lower Eastern, Nyanza, North Eastern, and Coast.

The Ministry was proposing an amendment to the Road Maintenance Levy Fund (Imposition of Levy) Order, 2016 by increasing the Road Maintenance Levy on petrol and diesel.

Former Road and Transport CS Kipchumba Murkomen told the Parliamentary Finance and National Planning Committee last month that the levy was last reviewed in 2016 and thus needs review.

Currently, the levy is set at Sh18 per liter.

The CS said that the hike in the tax will see the government collect an additional Sh32 billion. Now, the fund collects Sh83 billion annually.

Extra cash, he added, will allow the administration to repair and build roads, with a maintenance gap of Sh315 billion between 2023 and 2027 against the projected Road Maintenance Levy Fund.

If the new proposal is passed by MPs, this will push up fuel prices, which currently stand at record highs.

Read the original article on Capital FM.

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