High Court freezes Sh10.5 billion Road Maintenance Fund

The High Court has suspended the National Assembly’s decision to exclude county governments from benefiting from the Road Maintenance Levy Fund (RMLF).  

The court order, issued by Justice Lawrence Mugambi, temporarily halts the removal of Sh10.5 Billion in conditional grants allocated to counties for the 2024-2025 financial year.

“Pending the hearing and determination of the application inter partes, an interim conservatory order is hereby issued freezing funds held by the Kenya Roads Board collected as Road Maintenance Levy Fund in the financial year 2024-2025 to the extent of Sh10,522,211,853 being the allocation meant for the county governments,” judge Mugambi ordered.

The ruling comes after a petition was filed by several petitioners, including Issa Chamao, Patrick Ekirapa, Paul Kirui, the International Legal Consultancy Group, and the Council of Governors. They are challenging the constitutionality of the National Assembly’s decision made on August 13, 2024, arguing that it violates the principles of devolution and undermines the financial capacity of county governments.

Justice Mugambi underscored the importance of the case by certifying it as urgent and prioritising its hearing.

The court directed the respondents, including the National Assembly, Kenya Roads Board, and relevant government ministries, to file their responses within 10 days. The case is set to be heard on September 18, 2024.

The petitioners, represented by lawyer Peter Wanyama, argued that the decision to strip counties of ="https://www.standardmedia.co.ke/testbed/sports/business/2001501028/another-blow-as-court-halts-sh7-fuel-levy-increase-pending-case">RMLF funds< was made without proper legal basis and disregards the constitutional mandate of counties to maintain road infrastructure. “The decision is illegal and unconstitutional. Specifically, it undermines the mandatory constitutional objectives of the devolved system and the functions of county governments in the transport sector,” Wanyama argued

They asserted that the Kenya Roads Act of 2007 is outdated and fails to reflect the current constitutional framework that supports devolution.

Wanyama highlighted that county governments have historically relied on the RMLF to maintain roads, receiving over Sh50 billion since 2013.