- The toll levy will be charged alongside road maintenance levy, which means increased tax burden
- Revenue generated from the toll system to go towards funding of infrastructure development projects
- The National Treasury had slashed budget allocation to transport infrastructure development portfolio
Kenyan road users may soon be forced to shoulder more tax burden as the national government plans to reintroduce the toll system on the roads in efforts to raise funds for infrastructure development projects.
The decision comes after the National Treasure reduced allocation for infrastructure development and as it sought ways to meet huge national budget deficit.
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READ ALSO: KRA slaps small traders with 15% tax as government seek to raise revenue
The roads that are likely to be affected by new levy include Nairobi-Mau Summit road, Mombasa-Malaba-Busia highway, and Lamu-Garrissa-Isiolo road. Photo: Road Traffic Technology.
READ ALSO: Mudavadi warns Income Tax Bill 2018 will hurt Kenyans if passed
February 12, the National Treasurys Public Investments and Portfolio Management Stanley Kamau indicated the decision to bring back the controversial toll system was informed by shortage of funds to build or maintain roads.
The government does not have enough money to build roads. If we cannot collect additional revenues, this will mean a stop to road construction projects. We need to look at the benefit side calculated by a reduction in time travel between any given points, Kamau said.
READ ALSO: Cost of bottled water, soda and juices likely to go up as govt moves to impose tax
The government also opted to bring in private investors under the Private Public Partnerships (PPPs) arrangement to take over transformation of the local roads.
40 days understands the revenue collected through the proposed toll system will go towards compensation for the private investments.
According to Kamau, the transport infrastructure development portfolio is currently underfunded by about KSh 400 billion.
The new levy is expected to help plug the deficit.
READ ALSO: Cooking gas could soon be out of reach for most Kenyans as government introduces new tax
The Treasury clarified the road users will also continue to pay the road maintenance levy besides the toll levy, which means additional charges.
The roads that are likely to be affected by the new taxes include the Nairobi-Mau Summit road, Mombasa-Malaba-Busia highway and Lamu-Garrissa-Isiolo road.
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