Govt Increases Road Maintenance Levy by Ksh7 Despite Public Participation Feedback

The government has increased the Road Maintenance Levy (RDL) from Ksh18 to Ksh25 despite assurances from the Ministry of Roads that the overwhelming feedback calling for the hike to be delayed would be considered. 

The new RDL fee was made public in the latest fuel prices from the Energy and Petroleum Regulatory Authority (EPRA) when announcing new fuel prices effective July 15th to August 14th. The increased levy, however, has not affected pump prices, which reduced marginally in the notice issued on Sunday, July 14. 

A litre of petrol is now retailing at Ksh188.84, a litre of diesel at Ksh171.60, and a litre of kerosene at Ksh161.75. 

These prices reflect a decrease of Ksh1 for petrol, Ksh1.5 for diesel, and Ksh1.3 for kerosene compared to the previous pricing cycle from June to July.

The proposal to increase the Road Maintenance Levy was initially included in the Finance Bill 2024. However, it was later transferred to become a policy under the Ministry of Roads and Transport. 

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To ensure public involvement, the ministry conducted a public participation process which ended on Monday, July 8, allowing citizens to express their views on the proposed levy increase.

Former Cs of Roads and Transport Kipchumba Murkomen assured Kenyans that the government would take into account the thousands of submissions given to his ministry, admitting that a majority of Kenyans had called for the increase to be delayed. 

Murkomen went on to lobby for  the policy, noting that it would help the government raise Ksh78 billion which the ministry is struggling with in this financial year for the construction of multiple roads that were damaged by the recent heavy rainfall.

The former CS added that the government was open to the views of the public and they would analyse the reports received on email and social media platforms as well as the submissions, and come up with a decision that captures their recommendations.

“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,” said Murkomen on July 8.

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The RDL is one of the 9 taxes and levies that are tagged on the price of fuel, which some stakeholders have argued is over-taxed. For every litre of petrol, about 40% go to taxes 

Here is the breakdown all taxes and levies levied on petrol and diesel:

1. Excise Duty
2. Road Maintenance Levy
3. Petroleum Development Levy
4. Petroleum Regulatory Levy
5. Railway Development Levy
6. Anti-adulteration Levy
7. Shipping Levy
8. Import Declaration Fee
9. Value Added Tax (VAT)

The increased RDL could affect electricity prices in the coming days as fuel is a major component of the cost of power in Kenya. 

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