The amount of road maintenance levy that motorists are paying has been increased to Sh. 25 per litre of fuel from the previous Sh. 18 per litre of fuel, an equivalent of 39 per cent hike.

To minimize the impact, the Energy and Petroleum Regulatory Authority (EPRA) has used a subsidy to keep fuel prices within the same range in the new cycle to August 14. EPRA applied a subsidy of Sh. 3.35 on petrol and Sh. 2.50 on diesel to keep the prices of petrol and diesel at Sh. 188.84 and Sh. 171.60 per litre respectively.

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This is the latest increase in taxes by the government of President William Ruto, which has fallen out of favour with a majority of Kenyans due to its punitive taxation measures.

The Sh. 7 per litre of fuel increase in road maintenance levy was first hatched by immediate former Cabinet Secretary for Transport Kipchumba Murkomen. The former CS Murkomen had claimed that the increase was necessary as the levy was last adjusted in the year 2016.

“When the current fuel levy rate of Sh. 18 per litre was established in 2016, the pump price of petrol in Nairobi was Sh. 95 per litre. As at May 2024, pump price is Sh. 194 while the fuel levy has remained stagnant at Sh. 18 per litre,” he had claimed when he appeared before the Finance and National Planning Committee of the National Assembly.

“This difference illustrates the loss of purchasing power of the fuel levy over time due to inflation.” The former CS had then announced that this levy would be dropped in what was seen as the government’s attempt to soothe anger amongst Kenyans who have been protesting in the streets over poor governance, punitive taxation and corruption.

With this increase, collections from the levy are expected to rise from the current Sh. 83 billion to Sh. 115 billion, nd increase of Sh. 32 billion which motorists will need to cough up.