The Roads Department is exploring alternatives to fuel-based revenue as electric vehicle adoption threatens road maintenance collections.
Kenya is exploring alternative road maintenance funding as growing electric vehicle use threatens revenue from fuel levies. The move could bring a new charge for motorists as the government seeks other financing options.
In a November 3 statement, the State Department for Roads said it was examining alternatives to the Road Maintenance Levy Fund. It linked the review to a potential decline in collections as more motorists shift to electric vehicles.
Why road maintenance funding faces pressure
The government currently collects the road maintenance levy on every litre of petrol and diesel purchased. Motorists pay it through pump prices, and the proceeds finance road repairs, rehabilitation and maintenance across Kenya.
Under this model, higher fuel consumption generates more money for road upkeep. However, a shift towards electric vehicles reduces fuel use and could weaken that revenue stream.
Ministry figures put Kenya’s electric vehicle population at more than 35,000, with further growth expected in coming years. The department therefore wants to diversify its financing sources to maintain predictable funding during the transition.
The ministry has linked its search for alternatives to protecting maintenance revenue as vehicle technology changes. Its statement described an exploration of financing mechanisms rather than the introduction of a new levy.
Contractor bills add to financing strain
Meanwhile, Roads and Transport Cabinet Secretary Davis Chirchir has highlighted the ministry’s outstanding obligations to road contractors. In an October 30 update, he put gross pending contractor bills at Ksh98.17 billion as of June 2026.
The department is prioritising those payments alongside ongoing road development projects, a statement following the meeting said. Chirchir also said it had disbursed Ksh208.6 billion through a securitisation framework to finance construction and settle contractor obligations.
Some of that money has supported the expansion of the James Gichuru–Rironi Road. It has also funded improvements along the Garissa–Isiolo corridor.
Alongside these payments and projects, the ministry has stressed the need for sustainable road-sector financing. Its search for alternatives aims to protect maintenance budgets as electric vehicle adoption grows.
