NAIROBI – The Kenya Revenue Authority (KRA) collected Ksh 119.7 billion from the Roads Maintenance Levy (RML) in the fiscal year ending June 2025. The figure reflects a 50.9% rise, driven by a hike in the fuel levy from Ksh 18 to Ksh 25 per liter approved by Parliament in July 2024.
The sharp increase added Ksh 79 billion to KRA’s fuel tax revenue compared to the previous year.
According to KRA Commissioner for Customs and Border Control, Lilian Nyawanda, the spike in collections was also supported by an increase in fuel imports. “Oil volumes rose by 13% from July to June 2025,” Nyawanda said. “Petrol, diesel, and other oil products such as coal and lubricants saw growth rates of 10.7%, 13.8%, and 13.7% respectively.”
The RML’s role in infrastructure funding has drawn public attention following claims by Kiharu MP Ndindi Nyoro that the government is using the collected funds as security to raise Ksh 175 billion for clearing pending road construction bills.
Energy Cabinet Secretary Opiyo Wandayi clarified on the claims, insisting the levy adjustment had no connection to fuel price increases. “The Roads Maintenance Levy was revised to Ksh 25 per liter in July 2024. Since then, no new fuel taxes have been introduced,” Wandayi said in a public statement.
Fuel pump prices have spiked in recent weeks, with the Energy and Petroleum Regulatory Authority (EPRA) announcing on Monday that super petrol would rise by Ksh 8.99, diesel by Ksh 8.67, and kerosene by Ksh 9.65 per liter.
CS Wandayi attributed the jump to global pricing pressures, not domestic policy. “The increase was caused by a higher landed cost of imported fuels,” he explained. “Super petrol rose by $45.15 to $716.94 per metric ton, diesel by $52.63 to $616.47, and kerosene by $48.77 per metric ton.”
CS Wandayi also noted the government had not used the fuel stabilization fund to cushion the public, unlike in previous pricing cycles.
Meanwhile, data from the energy ministry shows that oil marketers recorded higher profit margins during the pricing window. Gross margins for super petrol rose by Ksh 5 to Ksh 17.39 per liter. Diesel margins went up by Ksh 4.95 to Ksh 17.31, and kerosene by Ksh 4.88 to Ksh 17.24.
In addition to the fuel levy, KRA reported a 15% increase in collections from the Railway Development Levy (RDL), which rose to Ksh 36.8 billion. Total oil-related tax receipts hit Ksh 338.28 billion a 12% year-on-year increase.
The revenue gains come at a time when the government is under pressure to pay off infrastructure debts without introducing new borrowing. The data provides fresh context for ongoing debate over the sustainability and transparency of public infrastructure funding.
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