Why state, motorists are at odds on road tolling

Southern Bypass toll station on Nairobi Expressway. The Expressway is the only tolled road in the country. [File, Standard] Road users want the government to provide non-tolled road alternatives even as the government pushes ahead with plans to introduce fees for use of some key roads and highways across the country. A section of stakeholders who had their voices heard during the recently concluded public participation process on the draft Road Tolling Policy argued that wherever the government erected toll stations, it should ensure there are non-tolled alternatives. The government has been considering tolling key roads, where motorists will pay to use the highways and roads. The money raised from the tolls will be used to maintain existing roads. In instances where new roads will be built using private capital, the private sector firms will charge tolls, with the money raised split between recouping their investments and maintaining the roads. In the draft policy that has been going through public participation, the government acknowledges that while some people might not be able to pay road tolls, the framework does not require providing them with free alternatives. It might, however, consider putting in place such measures as subsidies to cushion some motorists. "The government recognises that not every road user will be willing or able to pay tolls. Therefore, where there are existing alternative routes of acceptable standards for road users to commute to their destinations, it will not be mandatory to provide a dedicated toll-free alternative, especially where it will be deemed to impact the commercial viability of the toll road," reads the policy. "Where there is no alternative, appropriate measures... will be considered to ensure that the toll tariffs are affordable." Appropriate measures, according to the policy, should ensure the tolling policy is implemented fairly and equitably. "Tolling should be implemented fairly by ensuring that different user groups are treated equitably," reads the policy that is still in its draft form. "Considerations may include, but not limited to geographical distribution of toll roads, providing discounts for locals, high occupancy private vehicles and users of energy efficient vehicles, or implementing variable tolling based on vehicle type or time of day." The policy does not require the government to put up alternatives was among the issues that piqued interest of some of the lobbies representing different road users. Motorists Association of Kenya Chairman Peter Murima said the government should not force Kenyans to pay for the use of roads. "You see these are key roads, for instance Rironi-Mau Summit Road, and if we have no alternative, then we shall have issues," said Murima, who is among 750 petitioners who have gone to court to oppose the policy. "The role of the government is to build road infrastructure, while that of citizens is to pay taxes to get roads built and maintained as a service. Once you pay taxes, and once again you are asked to pay for the road to use, it's not right. Is the government abdicating its role to private investors?" Local resources Murima said there is no need for emergency construction of a dual carriageway, and expansion of the road should be done gradually. He noted that if a toll road is to be constructed, it should be done on virgin land along the stretch, leaving the existing road to be upgraded by local resources from the Exchequer. Shippers Council of Eastern Africa chief executive Agayo Ogambi backed the call for alternative roads to give people a choice. Ogambi called for clarity in the policy on the role of the government and private sector. "We see the aspect of government also wanting to be part of the whole process, and there is no clarity in the policy on what the government and private sector are going to do differently," he said. Other sentiments expressed by Kenyans during the February-March public participation process include fears that tolling would increase the cost of transportation, affecting prices of basic goods and services. Kenyans also said tolling may disproportionately affect low-income road users and small businesses and requested for a clear implementation network, showing the roads that will be tolled as well as alternative routes for non-toll payers. Stakeholders also urged the government to explore alternative mechanisms to fund road expansion and maintenance including fuel levies, vehicle registration fees or congestion charges. They also noted the need for government investment in alternative transport modes, including rail, bus rapid transit (BRT) and non-motorised transport infrastructure. These are recognised as critical in decongesting roads in urban areas but an area where the government has failed to cater for when constructing new roads and upgrading existing infrastructure. Should the government go ahead and implement road tolls, Kenyans demanded transparency in toll revenue management, which would ensure funds are reinvested in road maintenance and expansion as well as disclose to the public the process of developing and revising toll rates. There were also concerns that tolling would create disparities, favouring regions with better roads while marginalised areas remain underdeveloped. Requests for equitable toll distribution to avoid overburdening certain regions or highways. "As a ministry, we commit to ensuring affordability by setting reasonable toll rates and exploring subsidies where necessary," said the Principal Secretary for Roads, Joseph Mbugua, who added that there would be pilots before full-scale rollout once the tolling policy gets the green light. "The Ministry also assures Kenyans that toll revenue will be ring-fenced for road development and maintenance." In tolling roads, the government is trying to increase the resources available for road construction and maintenance but also reduce reliance on debt. The Ministry says it needs Sh5.146 trillion over the next decade to enhance connectivity and maintain the country's road network of 164,966 kilometres but expects to have only about Sh1.096 trillion available. In maintaining roads alone, the government requires Sh253 billion but is only able to raise Sh100 billion annually through the Road Maintenance Levy. This is despite a recent increase in the levy from Sh18 per litre of diesel and super petrol to Sh25, which motorists pay at the pump. The road maintenance requirement also changes depending on seasons, including the extent of the damage caused by heavy rains. "Why should we toll our roads when we have the Road Maintenance Levy? The levy only funds the maintenance of some roads that are insignificant for the entire network," Cabinet Secretary for Transport Davis Chirchir said at a recent forum on road tolling. "The estimates for the 2024/25 financial year indicate that about Sh100 billion was released while the ideal requirement for maintaining the entire roads system stands at Sh253 billion... highlighting a significant funding gap and the urgent need to identify additional sources for funding planned new roads." Other than its bid to avoid taking costly loans to develop roads, tolling is also expected to bridge the gap likely to be created as Kenya transitions from petrol and diesel-powered vehicles to electric vehicles. The draft tolling policy notes that money raised through levies for road maintenance at the pump could come under pressure as more EVs take to Kenyan roads and the government needs to look for alternative revenues to build and maintain roads. "A significant growth in EVs is projected in the long-term (10 years) to account for 30 per cent of annual sales or registration of vehicle fleets, fuelled by policy framework awareness, reasonable EV infrastructure, global pressure to transition to green energy, and climate change campaigns," reads the policy. "The fuel levy collection is reducing due to the emergence of e-mobility, more fuel-efficient vehicles, reduced vehicle registration as reported by NTSA, and the shift to public transport by the general population due to the current economic situation in the country." "In addition, the sale of petrol and diesel continues to decrease as demand for cheaper, more fuel-efficient cars and electric vehicles increases. If the government continues to struggle with already strained budgets while the private sector moves away from gasoline-powered vehicles, the condition of the road infrastructure will continue to deteriorate." The successful implementation of the Nairobi Expressway as the first major public-private partnership (PPP) project for the transport sector is seen as ushering in an era where the government may no longer need to heavily borrow for mega infrastructure projects. The government is also readying for the implementation of the Nairobi-Mombasa expressway using a similar model where US firm Everstrong will raise capital, design and construct it. It will then operate the road while charging road users fees to recoup investments. The firm has a 30-year concession during which it will construct and operate the roads. The Rironi-Mau Summit is also set to be built under a similar model. It had been concessioned to a French consortium, but this was later cancelled with the government now appearing to lean towards China. Fairness and equity And for National Treasury CS John Mbadi, successfully implementing road tolls and hopefully bringing onboard private sector into Kenya's road sector could mean doing away with one of his many headaches, that of looking for the billions needed to construct and maintain roads. But he also notes that tolling should be implemented with fairness and equity. "People should be charged for the services but we must look at the way we structure payments... and find a balance... how much should we charge so that we are also fair to Kenyans," said the CS in a recent interview with Citizen TV. "The principle of taxation that must be respected is equity and fairness. For instance, a person using their vehicles to ferry goods, we must have a system that recognises such road use." He added that there is no escaping tolling, only that "it should not be done in a way that hurts Kenyans". "People should also have alternatives. If you are tolling me on this road, then I should have an alternative where I do not have to pay," said Mbadi, adding that those who opt for the non-tolled alternatives should be alive to the cost implication that could, in some instances, be more expensive than paying the tolls. "If you do not have that money, there are Kenyans who cannot afford it. If you cannot afford it, you should have the option of taking a longer alternative but you should also balance that with the fuel that you will be using on that traffic. The majority of motorists will prefer the route that offers a fast way to their destination." The Transport Ministry has in the past said it planned to toll key roads such as the Thika Road and the Southern Bypass, which it has noted are among those that are ripe for the pay-to-use model. The two roads are essential to movement in the city, both for residents' daily commutes as well as traffic passing through the city. Thika Road has been key for many people who commute to work daily in the city but live in areas such as Kiambu and Thika. The Southern By-pass has been key in decongesting Mombasa Road, Uhuru Highway and Waiyaki Way, diverting trucks and other traffic from Nairobi's Central Business District. While PPP has in the past been seen as a means to reduce reliance on costly debt, it remained elusive with investors giving Kenya a wide berth, but now appears to be getting some traction. Kenyan motorists used to pay tolls to use such roads as the Mombasa Road, which was tolled at Athi River and Thika Road near Ruiru Town but these were abolished in 1999.

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