More pain for Motorists as RUTO plans to squeeze a whopping Sh2.6 billion from them – Look!

Wednesday, February 7, 2024 – The Government of President William Ruto, through the Kenya National Highways Authority (KeNHA), has unveiled a strategic plan that captures the agency's long-term goal of scaling up revenue generation, which the authority points out will enhance the functionality and durability of the road network across the country.

In its draft strategic plan covering 2023-2027, the Authority revealed that part of the strategy involves the collection of traffic fines and parking fees to raise Ksh2.6 billion in the next three years.

According to KeNHA, the overall target is to raise Ksh8.2 billion generated from its assets and operations.

Parking fees are a substantial source of KeNHA's Own Source Revenue for urban areas including Nairobi, Mombasa, Kisumu, and Nakuru among others.

To put it into perspective, the government plans to collect Ksh700 million in the current financial year, Ksh1.28 billion in the financial year 2024/25, Ksh1.78 billion in the year 2025/26, Ksh2.2 billion in the financial year 2026/27, Ksh2.6 billion in the financial year 2027/28.

To realise this plan, KeNHA plans to leverage ICT process automation, adopt new technologies and increase the use of data analytics to enhance service delivery and optimise costs. 

"The Authority will scale up generation of revenue from assets and operations through interest incomes; exemption permits; rental and leasing incomes; roadside stations and roadside development (fees on road cutting, ducts, billboards and accesses)," KeNHA stated.

"During the plan period, the Authority projects to raise Ksh8.2 billion own source revenue."

Aside from the traffic offences and parking fees, KeNHA is also banking on generating revenue from roadside station fees (Ksh150 million), roadside development (Ksh1 billion), rental and leasing income (Ksh255 million), exemption permits (Ksh1.2 billion) and interest income (Ksh2.9 billion).

The Authority also plans to raise Ksh96.5 billion through Public Private Partnerships (PPP) and tolling of road projects.

KeNHA listed three highways including the Rironi-Nakuru-Mau Summit, Mau Summit-Malaba, and the upcoming Nairobi - Mombasa highway for this plan.

The Kenyan DAILY POST,