The continued expansion of Kenya’s road network, coupled with budget shortfalls and inflation, has led the government to increase the Road Maintenance Levy (RML). Ministry data indicates this adjustment was necessary as the value of the country’s road assets has grown to about Sh4 trillion, making it one of Kenya’s largest public investments.
According to the Roads and Transport Ministry, the inflationary environment and depreciation of the Kenyan shilling have significantly impacted the cost of imported construction materials. Since the last levy adjustment in 2016, from Sh12 to Sh18 per litre, the levy has been increased by Sh7 to Sh25 per litre of petrol and diesel. This increment is slightly lower than the earlier proposal of Sh28 per litre.
The RMLF rate has been periodically reviewed to match changing economic conditions. Since the last review, the Kenyan shilling has depreciated by up to 34% against the US dollar, and similar declines against the Pound, Euro, and Yuan have led to increased costs of construction and road maintenance. The average annual deficit in the road maintenance fund is Sh63 billion, with current collections equivalent to Sh52 billion in 2016 prices. The annual requirement for road maintenance averages Sh157 billion.
The government, with the help of development partners, has significantly expanded and rehabilitated the road network over the past decade, growing from 161,451 kilometres in 2016 to 239,122 kilometres in 2023. However, 30% of the network remains in poor condition, requiring substantial resources for restoration.
The Kenya Roads Board oversees road maintenance and development, but declining development budgets and growing pending bills have reduced available funds. Consequently, the government has had to resort to higher RMLF rates. Despite public opposition, this measure is deemed essential to sustain the transport sector, which contributes 6% to the GDP and handles over 90% of all freight and passenger traffic in Kenya.
