Work Detail |
The government is looking to raise money for road maintenance and rehabilitation Electric vehicles (EVs) in Kenya will be eligible for discounts and incentives once the government operationalises the proposed National Tolling Policy, currently undergoing a public participation process. The policy aims to introduce toll charges on Kenya’s major roads to generate revenue for road maintenance and rehabilitation. At a public engagement on the policy in Kakamega recently, Engineer Billy Kimko from the Kenya Roads Board, as quoted by the Kenya News Agency (KNA), said that EVs would receive discounts due to their contribution to reducing carbon emissions. Additionally, the policy will benefit high-occupancy private vehicles and those travelling short distances through tolling points, ensuring road users pay in proportion to their usage. Certain vehicles, including military, police, ambulance and fire service vehicles, will be exempt from toll fees. Tolling to make up the finance shortfalls for road maintenance in Kenya The KNA further reported that the government is prioritising tolling as an alternative revenue source. This is in direct response to the decline in funding from international lenders and the anticipated drop in Roads Maintenance Fuel Levy (RMFL) collections due to the rise of e-mobility. Kimko highlighted a significant budget deficit for road maintenance in the 2024/2025 financial year. The RMFL provided approximately KSh100 billion (around $772m) for the period. At least KSh253bn (around $1.9bn) is required to sustain the country’s 239,122-kilometre road network, he pointed out. To bridge this gap, the government is exploring Public-Private Partnerships (PPPs), similar to the Nairobi Expressway model. The policy proposes tolling four categories of roads, including newly constructed roads and improved roads with higher service quality than un-tolled alternatives. Tolling infrastructure to be rolled out across Kenya A vehicle identification and registration system linked to automatic number plate recognition will be developed to facilitate toll collection. In the initial phase, tolls will be collected via conventional toll booths and a pre-paid payment system. Deputy Director and Technical Working Group Team Leader on the National Tolling Policy, Engineer Kennedy Nyabuto, explained that the policy aligns with the National Funding Policy’s objective of securing sustainable funding for road maintenance. During the forum, participants criticised the Kenya government for prioritising major roads over rural infrastructure, highlighting the poor state of roads such as the Lurambi-Navakholo-Musikoma road. Many urged the government to ensure equitable allocation of road maintenance funds. Tolling a double tax, say public transport operators The KNA reported that Public Service Vehicle (PSV) operators also raised concerns, arguing that toll charges would amount to double taxation, as they already pay an annual KSh3,500 (around $27) operating fee to county governments. The Transport Cabinet Secretary and the National Treasury will determine initial toll charges, which will be updated quarterly to reflect inflation, exchange rates, tax adjustments and economic growth. |