Former Kenya Industrial Commercial Bank (KICC) Chief Executive Officer Irungu Nyakera has argued that calls to reduce the Road Maintenance Levy to ease fuel prices are misplaced, saying most of the revenue has already been committed to debt obligations.
In remarks shared publicly, Nyakera said the debate around fuel costs should focus less on reducing the levy and more on how the funds have been structured through securitisation agreements that stretch over several years.
“Those calling for a cut in the Road Maintenance Levy to lower fuel prices are missing the point. The problem is not the levy itself, but the fact that almost 50% of it has already been securitized,” he said.
Nyakera traced the evolution of the levy, noting that under former President Uhuru Kenyatta’s administration, the Road Maintenance Levy stood at KES 18 per litre, generating about KES 86 billion annually for road upkeep.
He said this was used to maintain 21,826 kilometres of paved roads, translating to approximately KES 3.9 million per kilometre.
According to him, the current administration increased the levy to KES 25 per litre, raising annual collections to about KES 115 billion.
However, he claimed that subsequent financing arrangements have significantly altered how the money is spent.
“In February 2025, the government securitized KES 7 of that levy for the next 10 years. Then in November 2025, Cabinet approved securitizing an additional KES 5 without parliamentary approval, prompting MPs to call it a constitutional overreach,” he said.
Nyakera further stated that the commitments now mean a large portion of the levy is pre-allocated to debt servicing, reducing the funds available for actual road maintenance.
“That means out of the KES 115 billion collected for road maintenance every year, KES 47 billion now goes to servicing debt, leaving only KES 68 billion to maintain 25,412 km of paved roads,” he said.
He added that this translates to about KES 2.7 million per kilometre today, down from KES 3.9 million under the previous administration.
Nyakera concluded that reversing the levy may not be feasible due to existing financial commitments.
“The levy is unlikely to come down because it has already been pledged away for a decade. So as the potholes get bigger, you either work harder, or steal harder, and buy yourself a bigger car,” he said.
His remarks come amid renewed public debate over fuel prices and government options to cushion consumers, including tax adjustments and reforms in petroleum pricing structure