Transport stakeholders call on government to reconsider increased fuel levy

The Motorist Association of Kenya Chairman Peter Murima and other transport stakeholders during a press briefing at Mfangano street Nairobi on Friday 19, July 2024.

Transport

Transport sector stakeholders have urged the government to reconsider the recent increase in road maintenance levy from Sh18 to Sh25. The stakeholders said that the recent development will negatively impact their businesses by increasing operating cost and reducing profitability in the transport sector.

For Instance, Bernard Omondi from the PSV Business Corporation said that as stakeholders they reject the illegal increase of the road maintenance levy without official public participation.

“This move amounts to the re-introduction of the dropped Finance Bill 2024,” said Omondi, who spoke in Nairobi, while addressing the media.  HE further explained that the increased amount means that players in the transport sector will not benefit from the declining of fuel prices globally.

“As stakeholders we demanded the disbandment of the Energy Petroleum Regulatory Authority (EPRA) and criminal charges pressed against the two former Cabinet Secretaries (CS’s) who approved the increased road maintenance levy,” said Omondi.

The stakeholders also called for compensation of vehicle owners who lost their hard-earned money to the illegality, saying it was high time road maintenance reverted to being funded by the ex-checker. They further stated that their key actions and demands include taking legal actions by seeking the court’s intervention on the illegality and ask for its removal.

“We demand the transport sector to adapt the transport multi agency committee report, enhance coordination, streamline operations and improve safety,” Omondi said adding that they are also demanding an end to extortion by police and county government’s askaris.

The transport stakeholders demanded the restructuring of the National Transport and Safety Authority (NTSA), Transport County Committees and Kenya Roads Board (KRB) to include key stakeholders for more inclusive policies.

Omondi said that they are issuing a 7-day ultimatum to the government to scrap the sh7 added to road maintenance levy failure to which they will be on the street on the 8th day.

“We are concerned about the increased insecurity on the major highways specifically the Mombasa to Mtito-Andei and Kisumu to Busia roads where passengers, drivers and cargo are being targeted. Despite our numerous complaints over the issue, no action has been taken,” said Omondi.

The Motorist Association of Kenya Chairman Peter Murima said that EPRA does not use the fuel formula proposed to regulate fuel prices as per 2010 Kenyan constitution.

“EPRA does not make independent regulations which should be based on scientific formula, hence it should be disbanded so that the transport sector can have independent, well structured, well represented commissioners to be determining the fuel price,” said Murima.

 Murima questioned why the government denies the transport sector world global prices suggesting that petrol should be retailing at Sh140.

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