Nairobi-Mau Summit Road: Govt Responds to Claims Over Tolling Fees to Be Charged on 175km Highway
- The government approved proposals from two companies, which commenced a feasibility study for the construction of the Nairobi-Mau Summit Road
- The Kenya National Highways Authority (KeNHA) said motorists will pay toll fees to the contracted firms for 30 years
- Kenyans raised concerns over the toll fees, with former parliamentary budget committee chair Ndindi Nyoro arguing that it is double taxation
- However, director general, Directorate of Public-Private Partnership (PPP) Seda Kefa, explained to TUKO.co.ke the viability of tolls, saying it's not a tax
Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.
Plans are underway to commence the construction of the Nairobi-Mau Summit dual road.
Source: Twitter
There has been controversy over the funding of the road, which will see Kenyans pay toll fees for over 30 years.
Former parliamentary budget committee chair and Kiharu MP Ndindi Nyoro faulted the government's move, claiming that it will be double taxation for Kenyans.
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Nyoro argued that the dualing of the road should be done as a government-funded project and without tolling or requiring users to pay.
Why Nairobi-Mau Summit Road tolling is not taxation
However, Director General, Directorate of Public-Private Partnership (PPP) Kefa Seda dismissed the claims.
Speaking exclusively to TUKO.co.ke, Seda explained that the toll fees to be charged on the road are not double taxation.
"There is a difference between a tax and a toll fee. Tax applies to the general public and is enforced by law, while tolls are user fees only applicable to those who consume the services offered on a particular road, hence, there is nothing like double taxation," said Seda.
Seda noted that the levy collected from motorists (Road Maintenance Levy) does not meet funding needs for maintenance and development of roads in the country.
"It is known (from KRB Reports) that maintenance needs outweigh the RML collections, hence the need to seek alternative financing to bridge the gap," he added
He further explained that when a road is put under a PPP concession, it ceases to be a beneficiary of RMLF proceeds, allowing other roads to benefit.
Source: UGC
How much will motorists pay in toll fees?
The Nairobi-Mau Summit Road dualing, starting at Rironi, Limuru, is estimated to cost KSh 170 billion, funded by debt worth KSh 120 billion, secured from private investments.
KeNHA approved the privately initiated proposals from NSSF consortium and another company, which commenced a feasibility study for the construction of the 175-kilometre road.
The authority called on all motorists to cooperate with traffic police officers during the survey period.
KeNHA said tolling will begin after construction is completed and will be guided by the proposed National Tolling Policy.
Earlier, the former PPP director general at the National Treasury projected toll fees per motorist to range from KSh 700 for small saloon cars to KSh 6,000 for trucks.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
