Kenyans face a potential transport crisis as industry stakeholders have issued a seven-day strike notice to the government amid escalating tensions over the controversial Road Maintenance Levy.
This could affect nearly all Nairobians, as 8 out of 10 people commute to work using public service vehicles daily.
On Friday, July 19, the Motorists Association of Kenya (MAK) expressed its discontent with the government’s decision to increase the road maintenance and fuel levy from Ksh18 to Ksh25 per litre. The association condemned the hike as illegal and called for its immediate repeal, demanding structural reforms to improve transparency and accountability in the sector.
The Energy and Petroleum Regulatory Authority (EPRA) announced the Ksh7 increase in the levy this week, sparking widespread criticism. MAK contends that this adjustment is a direct infringement on taxpayers, resulting in an additional Ksh140 million daily revenue for the government, which they dub an “illegal levy.”
Peter Murima, the chairperson of MAK, vehemently opposed the increase, stating, “We, the undersigned, reject the illegal increase of the road maintenance levy.” Murima highlighted that the daily collection of Ksh140 million, multiplied by the 20 million litres of diesel and petrol consumed daily, underscores the financial burden placed on motorists.
Murima’s statement was unequivocal: “We give the government seven days to rescind the increase or face industrial action.” The threat of a nationwide strike looms large, potentially disrupting transport services across Kenya.
The contentious levy was gazetted on July 10, 2024, by former Transport Cabinet Secretary Kipchumba Murkomen. This decision came a day after Murkomen had promised that the government would address public concerns raised during the consultation period. Murkomen defended the levy hike as a necessary measure to generate an additional Ksh32 billion in revenue, crucial for addressing the Ksh315 billion maintenance gap projected between 2023 and 2027.
The tax structure now includes several components: Excise Duty tax (Ksh21), Road Maintenance Levy (Ksh25), Import Declaration Levy (Ksh26.05), Petroleum Development Levy (Ksh5.40), Petroleum Regulatory Levy (Ksh0.75), Railway Development Levy (Ksh1.33), and Value Added Tax (Ksh26.05). The total annual collection from these levies stands at Ksh83 billion.
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