Fuel Prices Set to Increase in New Finance Committee Proposal

    Kenyans may face increased fuel costs after the government’s proposal to increase the road maintenance levy by Ksh.7 per litre.

    According to the report tabled by Finance Committee chair Kuria Kimani on the Finance Bill, 2024, the levy has not been amended since 2017, despite the fact that fuel costs have risen in recent years.

    “To help raise sufficient funds to maintain and repair roads across the country the Committee recommends an increase of the Levy pursuant to Section 3 of the Road Maintenance Levy Fund Act from KES 18 to KES 25 per litre all petroleum fuels,” reads part of the committee’s report.

    The road maintenance levy is a levy imposed at the pump that funds the operation and maintenance of the country’s road network.

    Increasing the RML means Kenyans will have to pay more for fuel at a time when they are already struggling with high living costs.

    The levy is deposited into the Road Maintenance Levy Fund for annual repair and maintenance of roads over the years. The committee observed there has been an increased cost of road repair and maintenance.

    The fall in the collections under the road maintenance levy has continued to affect the repair and maintenance of highways, urban, and rural roads. Recent El Nino linked heavy rains and flooding has further worsened the extent of road destruction in the country.