Kenya’s government is cashing in big at the pump — collecting an additional Ksh 79 billion annually after raising a key levy on fuel. While the move boosts road infrastructure funds, it’s also adding pressure to already strained household budgets.
Highlights:
- Road Maintenance Levy rose from Ksh 18 to Ksh 25 per litre.
- Kenya now collects Ksh 79B more per year from the fuel levy.
- The levy is meant to fund road maintenance and stalled projects.
- Citizens and businesses are feeling the impact of higher fuel prices.
Main Story:
The government has significantly increased its revenue through the Road Maintenance Levy, following a hike from Ksh 18 to Ksh 25 per litre. This adjustment means an extra Ksh 79 billion will now flow into state coffers every year — funds earmarked for improving road infrastructure nationwide.
The Kenya Roads Board (KRB) highlighted a huge maintenance gap: Kenya needs up to Ksh 157 billion annually to properly maintain its roads, yet previous collections fell short. The higher levy is designed to bridge this gap and help clear Ksh 175 billion in pending road contractor bills.
Beyond maintenance, part of the increased revenue will support stalled road projects and pay off debts through securitization — where future levy earnings are used to secure funds for immediate use by the government.
Despite its intended benefits, the levy hike has been met with criticism. With fuel prices already high, the added cost per litre hits motorists, transporters, and ordinary citizens hard — especially as taxes now account for over Ksh 79 per litre of fuel.
Every drop at the pump now fills more than your tank — it fuels Kenya’s biggest infrastructure ambitions, but at what cost to everyday lives?
