Kenya Keen Not to Raise Cost of Living via Road Maintenance Levy – Murkomen

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kenya-keen-not-to-raise-cost-of-living-via-road-maintenance-levy-–-murkomen — Kenya Keen Not to Raise Cost of Living via Road Maintenance Levy – Murkomen

The government has reassured Kenyans that any decision to get extra money for road maintenance shall not raise the cost of living, following concerns of hike in fuel prices to foot the bill.

According to Ministry of Roads and Transport, an increase in Kenya’s road network from 166,451 kilometres in 2016 to the current 239,122 kilometres require regular maintenance from the KSh18 provided for by the Road Maintenance Levy that has been in place for the last eight years.Thanking Kenyans for turning up in large numbers to give their views on the maintenance of roads, he said reports at hand will be analysed to come up with a decision that corresponds with the recommendations from the public. He added that the government will explore ways of getting the resources needed to maintain roads, as expressed by Kenyans in their numbers, without raising the cost of living through an increase in petroleum prices. “As a country, we are grappling with a maintenance deficit of KSh78 billion this financial year alone. With the current trend, it is projected that by Financial Year 2028/2029, this financing gap will rise to KSh 315 billion,” said CS Kipchumba Murkomen, Ministry of Roads and Transport.

“Most of these abandoned roads are under the Low Volume Seal programme which have never been maintained in the last 10 years and are on the verge of being wiped away altogether. The Roads Maintenance Levy Review is, therefore, intended to fill this gap.”

“As suggested by Kenyans, we will only make this decision when we are certain that any revenue measures adopted will not result in a rise in the cost of living,” added the CS..

Last month, the CS told the Parliamentary Finance and National Planning Committee that the Road Maintenance Levy was last reviewed in 2016 and thus needs review. During the session, CS Murkomen said that the hike in the tax will see the government collect an additional KSh 32 billion. Now, the fund collects KSh 83 billion annually.

Fuel holds key influence in the cost of living as transportation of goods and services depends on it, any upward adjustment to it has ripple effect on food and other essential services with direct impact on inflation. Currently, pump prices for Super Petrol in Nairobi retail at KSh 189.84 and Diesel at KSh 173.10