MBADI CLARIFIES FUEL HIKE, DENIES IMPOSING NEW KSH 7 LEVY.

Treasury Cabinet Secretary John Mbadi has dismissed claims that the government introduced a new Ksh 7 tax on fuel, clarifying that the amount is part of a securitised levy aimed at settling pending road construction bills.
Speaking amid growing public concern over rising fuel prices, Mbadi explained that the Ksh 7 is an allocation from the existing Road Maintenance Levy Fund (RMLF), which stands at Ksh 18 per litre. He said the government opted to securitise the levy to raise upfront funds for infrastructure development.
“This is not a new tax. It is part of the Ksh 18 road levy, and what we’ve done is use Ksh 7 from that to raise over Ksh 60 billion so far to pay stalled contractors,” Mbadi stated.
The funds, he added, are being used to pay off certificates worth over Ksh 175 billion owed to road contractors. The securitisation strategy, approved by the National Treasury and the Attorney General, was chosen to prevent the continued wastage of public funds on short-lived murram roads.
Mbadi’s remarks come after National Assembly Budget Committee Chair Ndindi Nyoro accused the government of sneaking in a hidden levy through the back door.
However, the CS dismissed the allegations as misleading, maintaining that the recent increase in fuel prices is due to global factors, including the rising cost of crude oil and shipping disruptions.
“Let us not politicize the pain of Kenyans. The price hike has nothing to do with securitisation. Global dynamics are to blame,” he added.
The government now plans to expand the securitisation to raise a total of Ksh 175 billion, which, combined with the annual Ksh 57 billion infrastructure budget, will fund major projects countrywide.