Counties Set to Receive Ksh10.5B Share in New Fuel Levy Road Funding Plan

Counties will start receiving a guaranteed share of road maintenance money if a new government plan on fuel levy distribution is adopted.

The Ministry of Roads and Transport has proposed a new formula that would see devolved governments collectively allocated Ksh 10.5 billion from the Road Maintenance Levy Fund (RMLF). The plan is meant to formally include counties as direct beneficiaries of the fund, which has traditionally been managed at the national level.

If implemented, counties would receive 15 per cent of the total annual RMLF collections, while the national government retains 85 per cent to maintain key highways and major transport routes that link regions and support national trade.

The proposal was presented before the Senate Standing Committee on Roads, Transportation and Housing, where officials outlined the structure as part of wider reforms in the transport sector.

The ministry explained that the allocation system is based on technical data rather than fixed political percentages. It factors in road length, traffic volumes, road condition, and classification, using information from the updated 2025 Roads Register.

According to the breakdown, national roads classified under S, A, B, and C categories would receive about Sh59.49 billion. County governments, responsible for local roads in Classes D to G, would share approximately Sh10.51 billion.

The Road Maintenance Levy Fund is financed through a Sh25 charge on every litre of fuel sold in Kenya. It raises around Ksh 70 billion annually and remains one of the most reliable sources of funding for road maintenance across the country.

Officials told the Senate committee that the proposal is grounded in the Constitution, which clearly separates responsibilities between national and county governments when it comes to infrastructure development and maintenance.

The ministry also pointed to a 2025 High Court ruling that required the government to involve counties in future RMLF sharing arrangements, reinforcing the need for a more inclusive funding structure.

To improve accountability, the new framework introduces tighter financial controls. Counties will be required to open dedicated accounts for road maintenance funds and prepare annual work plans before receiving allocations.

These plans will be subject to review and audit by the Kenya Roads Board to ensure proper use of public resources and timely implementation of road projects.

The government says the reforms are aimed at improving efficiency, reducing delays in road repairs, and ensuring that both national and county governments operate within a clear and coordinated funding system.

If approved, the proposal would mark a significant change in Kenya’s road financing model, giving counties a formal stake in fuel levy revenues while maintaining central control over major transport infrastructure.