The Kenyan government has come out to justify fuel prices relatively costing higher as compared to other East African States that rely on the Port of Mombasa for their fuel imports.
Government spokesperson Dr. Issac Mwaura; in a media briefing; has clarified that unlike neighboring countries, portions of the pump price goes to the development of roads and other infrastructures.
“Through securitization of revenue from fuel prices we plan to build over 6,000 Kilometers of road and maintain over 20,000 kilometers.” Mwaura explained.
Securitization of a levy is a financial mechanism where a government pledges future, predictable tax revenue as collateral to raise immediate, upfront cash from private investors.
The Kenyan government has currently placed a levy of Ksh. 25 on every Liter of Petrol and diesel known as the Road Maintenance Levy to raise funds for road development.
The levy is currently channeled to the Kenya Roads Board (KRB)
“We are targeting to build another 28,000 Kilometers of roads as part of the Singapore plan.” The Spokesperson has explained.
Mwaura has further said the Neighboring states used a delayed pricing model as compared to Kenya.
“Our neighbors are using prices for February and March while we are on April prices. This means that their prices will definitely rise in the long run.” Mwaura has added.
The Spokesperson has called on politicians not politicize the fuel prices matter dismissing those who have threatened to hold demonstrations to protest the price hike.
