KeNHA on Roll-out Fixed Road Repair Rates

The Kenya National Highways Authority (KeNHA) plans to set new rates for road maintenance amid pressure to limit bursts on budgets and guarantee value for taxpayers’ money.

Agency said it will also review the formula for spending cash allocated through the Road Maintenance Fuel Levy (RMFL).

“The formula is expected to optimise absorption of the allocated funds and increase value for investment. The scientifically developed unit rates will ensure that works are procured based on current market prices,” KeNHA said as it invited bids for a consultancy on the new repair costs and funds allocation.

In the country, road maintenance costs are currently estimated and negotiated with contractors.

Kenya maintains the country’s road network through the Kenya Roads Board Fund (KRBF), which is mainly financed via proceeds of the RMFL fund, which is currently charged at Sh18 per litre of petrol and diesel, as well as transit tolls.

The KRBF is shared among the various road agencies charged with maintenance, including KeNHA, Kenya Urban Roads Authority (KURA), Kenya Rural Roads Authority (KeRRA), Kenya Wildlife Services (KWS), and county governments.

The mentioned road agencies are under pressure to manage costs and improve work quality amid budget bursts.

Latest data by the Treasury shows that the State Department of Infrastructure exceeded its development budget by Sh6.2 billion, a month to the end of the financial year in a race to complete President Kenyatta’s legacy projects.

Spending on building roads and bridges almost hit Sh69.25 billion in 11 months to May against a revised budget of Sh63.04 billion for the financial year 2021/22.

It translates to 9.84 per cent over-expenditure, which is close to the 10 percent legal limit under section 36(9) of the Public Finance Management (National Government) Regulations, 2015.