KRB to Clear Sh140b Bill in 36 Months

Kenya Roads Board (KRB) mulls spending close to Sh 50 billion annually to help clear surging pending bills following an increase in revenue from fuel levy funds.

KRB says the move will enable the State to ease the pressure by reducing Kenya’s pending bills estimated at Sh1 trillion, as the board shifts focus from road maintenance to development.

Speaking during a ceremony to unveil Phyllis Wakiaga as the new board chair of the fund yesterday, outgoing Transport Cabinet Secretary James Macharia said plans have been put in place to ensure KRB clear its pending bills estimated at Sh140 Billion in three years.

The board is banking on the amended KRB Act passed by the last Parliament which increased the amount of fuel levy funds meant for development vis-a-vis maintenance, from 10 to 50 percent.

“If you have a turnover of Sh100 billion per year you can take Sh 50 billion into development and Sh 50 billion to clear pending bills every year,” noted the outgoing Transport CS James Macharia.

At the close of the financial year 2021/2022, KRB collected a total of Sh87.4 billion comprising roads maintenance levy and transit tolls for the development and maintenance of the road network in Kenya.

There was an increase in the number of vehicles in the country and saw its turnover surge from Sh5 billion in the year 2000 to Sh100 billion in the 2021/2022 financial year. Official data shows Kenya had 3.9 million registered vehicles at the end of 2020.

The renewed focus on development rather than maintenance saw the road agencies receive Sh77.3 billion for maintenance in the financial year ended 2021/22 as the state consolidated previous gains to maintain better roads across the country.