Road agencies on the spot over Sh70bn fuel fund use

Traffic along Thika Road in Githurai.

File | Nation Media Group

By  Edwin Okoth

What you need to know:

• The money is milked from motorists from fuel purchases at Sh18 per litre of petrol and diesel.
• The levy  now contributes close to Sh70 billion shared between the KeNHA, Kurra, Kenya Rural Roads Authority, the KWS and the counties.

Road agencies are making accounting for the multibillion-shilling Road Maintenance Levy Fund difficult, casting doubt on whether the funds are directed to the intended purpose. 

The money is milked from motorists from fuel purchases at Sh18 per litre of petrol and diesel and distributed by the Kenya Roads Board.

The board now says a follow up on how the funds have been spent is complicated by the agencies who mix it up with other monies.

KRB acting managing director Rashid Mohamed said the regulator will soon compel the agencies to ensure they present separate accounting for the money motorists contribute to repair and maintain roads across the country.

“Road authorities do not prepare separate financial statements for the Road Maintenance Levy Fund except the Kenya Wildlife Service, which receives the least allocation from the fund. They mingle funds from the exchequer, interest earned from bank deposits and the fuel levy which leaves its audit trail a bit opaque and sometimes the funds are used for other purposes other than road maintenance,” Mr Mohamed said.

Keep roads in good shape

The levy, which now contributes close to Sh70 billion shared between the Kenya national Highways Authority, the Kenya Rural Roads Authority, the Kenya Urban Roads Authority, the Kenya Wildlife Service and the counties, is meant to keep roads in good shape.

KRB apportions the funds to agencies after providing their yearly plans for road maintenance known as the Annual Public Roads Programme. The plans are then submitted to the Transport and Infrastructure Cabinet Secretary and Treasury for approval before being used as a basis for allocations.

One of the road agencies, however, denied that there are actions that may compromise auditing of the fuel levies since the regulator approves the plan and funds according to it.

Kenya Urban Roads Authority Corporate Communications Director John Cheboi said the amounts allocated are project specific, making it easy to trace but admitted there are instances the money could be used for different purposes.

edokoth@ke.nationmedia.com