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Motorists term new road levy an ‘economic crime’, demand full refund

Motorists term new road levy an ‘economic crime’, demand full refund
A section of the Mombasa Road. PHOTO/HANDOUT
In Summary

The 2024 adjustment saw the levy rise from 18 shillings to 25 shillings per litre, the first increase in nearly ten years, with the last being in 2016.

Motorists have renewed calls for the government to refund road levies collected since the 2024 increase of the Road Maintenance Levy Fund (RMLF), terming the increment and subsequent fuel price hikes as a form of economic exploitation.

In a statement issued on Monday, July 21, the Motorists Association of Kenya (MAK) condemned the rise in the RMLF and blamed the government for the soaring fuel costs announced in the latest review by the Energy and Petroleum Regulatory Authority (EPRA).

The association described the levies as an “economic crime disguised as policy” and accused the state of using road maintenance as a cover to introduce what they consider unjust and excessive charges, only to misuse the funds.

"Under the guise of road maintenance and upgrades, the state imposed an unjustified hike - a whopping increase per litre; only to misappropriate the funds in shady securitisation of loans and covert deals to pay real and ghost contractors in a growing pattern of financial impunity," the association said.

They argued that the government bypassed public consultation when increasing the RMLF, rendering the decision unconstitutional and invalid.

The motorists' group now wants the RMLF hike reversed, alongside the recent EPRA fuel price review.

They are also calling for thorough investigations by oversight bodies, including the Ethics and Anti-Corruption Commission (EACC) and the Office of the Auditor General, into what they term as fraudulent use of public funds.

Further, the association is demanding a full refund of all money collected under the increased levy, which they insist was introduced under an illegitimate framework.

Interior Cabinet Secretary Kipchumba Murkomen, who previously held the Transport docket, was also singled out for blame over the 2024 levy hike. The association faulted his role in what it says was an unjustified decision to raise the fund.

The 2024 adjustment saw the levy rise from 18 shillings to 25 shillings per litre, the first increase in nearly ten years, with the last being in 2016.

In response to the recent spike in fuel prices, EPRA attributed the increase to a rise in the landed cost of petroleum products in June. The landed cost is a key factor in determining pump prices.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi echoed EPRA’s explanation, saying global oil prices had surged, which in turn affected local pump prices.

Despite these explanations, the Motorists Association maintains that fuel prices should be determined by genuine international market forces. The group had earlier warned of peaceful demonstrations until their demands, including a return to a fully free market system, are addressed.

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