NAIROBI – Energy and Petroleum Cabinet Secretary Opiyo Wandayi has dismissed claims that the latest spike in fuel prices is tied to the government’s decision to securitize the Roads Maintenance Levy (RML).
Speaking on Tuesday, Wandayi said the price hikes were caused by an increase in global fuel import costs, not by financial arrangements related to road infrastructure funding.
“The increase is due to higher landed costs of imported fuel, not new taxes or the securitization of the levy,” Wandayi clarified.
Data from the Energy and Petroleum Regulatory Authority (EPRA) shows the landed cost of super petrol rose by $45.15 to $716.94 per metric ton between May and June. Diesel prices increased by $52.63 to $616.47 per metric ton, while kerosene rose by $48.77.
These changes triggered the fuel price adjustments announced by EPRA on Monday. The agency raised the price of super petrol by Ksh 8.99, diesel by Ksh 8.67, and kerosene by Ksh 9.65 per liter.
CS Wandayi emphasized that there has been no new tax imposed on fuel since July 2024, when Parliament approved an increase in the RML from Ksh 18 to Ksh 25 per liter.
“Since the revision, no further changes have been made to fuel taxes. The only variations are in ad valorem taxes such as the Railway Development Levy and Import Declaration Fee, which fluctuate based on the Cost, Insurance, and Freight (CIF) value,” Wandayi said.
This marks the second consecutive fuel pricing cycle where EPRA did not tap into the stabilization fund to cushion consumers. The absence of a subsidy, combined with higher import costs, has driven prices up.
Wandayi also rejected reports that suggest the government’s use of the RML as security to raise funds for pending road construction bills has pushed pump prices higher.
“It is misleading and inaccurate to connect the price increases with the securitization of the levy,” he said. “In previous cycles, the government used stabilization to ease the burden on consumers, but in this case, the price reflects actual market conditions.”
The government’s bond-backed financing plan for road projects has been under scrutiny, with some public figures claiming it is linked to rising fuel costs. Wandayi’s remarks aim to correct the narrative and explain that external market forces, not domestic financial tools, are driving the current spike.
As of now, the RML continues to support road maintenance and development, and the government maintains that it has taken no steps to alter this arrangement to the detriment of fuel consumers.
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