Senators want Sh3.4bn more from road fund
Migori Senator Eddy Oketch, the chairperson of the Senate Roads and Transportation Committee. The committee has recommended that counties receive an additional Sh13.9 billion for roads.
Senators are demanding over Sh3.4 billion more from the Road Maintenance Levy Fund (RMLF) to be allocated to counties in the coming financial year, even as this fiscal year’s allocation is still under a stalemate.
The latest development follows fresh demands by the legislators that counties be allocated Sh13.9 billion from the expected proceeds of the road fund for the financial year ending June 30, 2026.
Currently, senators and MPs are locked in a standoff over the control of Sh10.5 billion road levy funds for the fiscal year ending June 30, 2025.
But even as the impasse rages on, the Senate Roads and Transportation Committee recommended that counties receive Sh13.9 billion as conditional allocations towards maintenance and rehabilitation of county specific roads.
The committee chaired by Migori Senator Eddy Oketch said the amount should be included in the County Government Additional Allocation Bill, 2026.
Senator Oketch argued that sharing of expected proceeds of the road fund for the coming financial year takes into account transfer for counties towards maintenance and rehabilitation of county roads.
“We have resolved as a committee that a conditional allocation of Sh13.9 billion go to counties given the adjustments in the budget as contained in the budget policy statement. This is something we want to fight for,” said Mr Oketch.
Senators and MPs are still deadlocked over the inclusion of Sh10.5 billion levy fund as part of the County Governments Additional Allocation Bill, 2025, which is yet to be passed, three months to the end of the current financial year.
The Bill was published without the roads fund provision as the Senate and the National Assembly are reading from different scripts.
While MPs want the Bill passed in its current form, the senators maintain the levy fund must be included in the proposed legislation.
At the same time, senators also want a pie of approximately Sh175 billion projected to be raised from the Sh7 increase in fuel levy amount.
The lawmakers said the increase of the fuel levy from Sh18 to Sh25 per litre of petrol and diesel was meant to raise funds to settle pending bills in the roads sector.
“That on modalities and approval towards securing the additional Sh7 from fuel levy amount with a view to raising an estimated amount of Sh175 billion to also consider and incorporate a proportionate share towards settlement of respective county’s pending bills under the road sector,” he said.
The senators also said the fund, which has been floated into a road bond, must also be shared between the national government and the counties.
The committee said the additional Sh7 fuel levy has been floated in the capital markets to help the national government deal with a backlog of pending bills on existing projects.
“If the levy is taken from all Kenyans, why can’t the bond also be divided among counties and national government? Why can’t they also get a fair share of that road bond to also deal with county government stalled roads and growing pending bills?” asked Senator Oketch.
He said the road bond proceeds will help county governments enhance their road maintenance efforts as well as clear their growing infrastructure pending bills.
“If the road bond proceeds are shared equitably with counties, this will help settle pending bills on national and county road projects being handled by county governments. Counties deserve the money,” Senator Oketch said.
Appearing before the committee on Thursday, Bungoma Governor Kenneth Lusaka lauded the Senate for its commitment to devolution.
He emphasised that the proposed fund-sharing model would enable counties to fulfil their service delivery mandate effectively.
“This is the right way to go. If all committees of the Senate were to take such a stand, then we will be heading somewhere as far as devolution is concerned,” said Mr Lusaka.
The committee has directed the State Department of Roads to submit a reconcilable list of all identified outstanding bills totalling Sh175 billion within 14 days of the approval of the 2025 Budget Policy Statement (BPS) by the Senate. It should also identify the corresponding specific projects and contractors involved and the reason for the arrears.
The committee also wants access to the contractual information and other binding disclosures, including legal opinions and agreements between the borrower and lender. This information is required as part of the proposal to use part of the road fund proceeds as security to unlock additional financing through the issuance of a bond, provided within 14 days of the adoption of the Budget Policy Statement by the Senate and its relevant committee.
“That the information to be provided include the amount to be borrowed and borrowing costs (debt service) as well as its use and application and its implication of the sustainability of the road fund.”