New date for toll stations on major roads released

Infrastructure Principal Secretary John Mosonik (right) and Africa Development Bank regional director Gabriel Negatu, during the first Africa Bitumen/Asphalt Forum 2015, in Nairobi, on January 28, 2015. PHOTO | SALATON NJAU |  NATION MEDIA GROUP

In Summary

• Money collected would be used for road maintenance.
• Plan would be rolled out under private-public model but consumers’ lobby opposes scheme citing double taxation.

By EDWIN OKOTH
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Motorists using major highways in Kenya would from March start paying for use as government finally makes good its plan to introduce toll levy.

Infrastructure Principal Secretary John Mosonik on Wednesday said plans are at advanced stage to contract a transaction adviser to implement toll stations scheme.

The funds collected would be used for road maintenance as Kenya embarks on an ambitious plan to construct 10,000 kilometres of roads by 2017.

“Toll roads scheme will completely be a private-public partnership and we hope to get a transactional adviser by next month to roll it out. Mombasa-Nairobi-Nakuru highway, Thika Road and Southern by-pass will be the first to be incorporated under this scheme,” said Mr Mosonik.

ADVISORY SERVICES

He was speaking at the sidelines of a two-day Africa Bitumen/Asphalt Forum 2015.

The meeting, which ends on Thursday, attracted delegates from Africa, Asia, Europe and the Middle East to discuss latest market trends, innovation and technical developments in road construction.

In February, last year, an advertisement on local dailies sought an expression of interest from consultants who could provide transaction advisory services for the tendering of maintenance, operation and tolling of Mombasa-Nairobi Highway and Nairobi-Nakuru Highway through public-private partnership.

Also sought were the services of a lead financial adviser as well as environmental, legal, traffic and engineering consultant.

The technique has been criticised for delays as motorists slow down to pay fees but lauded for reducing traffic as well as improving roads.

Consumers Federation of Kenya secretary-general Stephen Mutoro faulted the plan, calling it double taxation on consumers.

“The government ought to fully diagnose the root cause of our poorly managed roads. It is not purely about insufficient funds, it is about excessive corruption which may persist even within the proposed toll stations. They will simply be conduit for fleecing consumers further and we are opposed to them,’’ Mr Mutoro told Nation.

PETROLEUM LEVY

In December, Kenya Roads Board renewed its push to have the Treasury double the petroleum levy, a wish that if granted could see the cost of fuel rise steeply despite the ongoing fall in global oil prices.

The agency wants the levy, which is charged at Sh9 per litre of petrol or diesel, raised to Sh18 — a demand that the Treasury declined to include in 2014/2015 Budget.

Total tax on petrol is about Sh30 per litre, on diesel is about Sh20 per litre and Sh2.20 per litre on Kerosene. In essence, the price of petrol, diesel and kerosene are almost the same before taxation, indicating how taxes distort market prices.