Narok Senator Ledama Olekina has defended Kenya’s fuel levy system, saying cheaper fuel would reduce funding for road construction and maintenance.
He argued on Monday that Kenya’s higher fuel prices compared to Uganda and Tanzania reflect infrastructure financing needs.
The debate continues amid public concern over living costs and government efforts to balance affordability with development.
In a statement shared on his X account, the Senator said rising calls for cheaper fuel must be weighed against the country’s development needs, noting that fuel levies play a key role in financing road construction and maintenance.
“I know it hurts a lot, but the truth is fuel isn’t ‘free money.’ Cheaper fuel means less levy revenue for roads,” he said.
Kenya operates a fuel levy system where a portion of taxes collected on petroleum products is directed towards road development.
The system has been a key source of infrastructure financing for decades, supporting expansion and maintenance of the national road network.
According to data cited by the Senator, Kenya has a road network of 164,967 kilometres, of which 15.1% (24,868 km) is paved.
He contrasted this with neighbouring countries, noting that Uganda has 146,000 km of roads with only 4.4% paved (6,466 km), while Tanzania has 181,000 km with about 8% paved (15,000 km).
“Kenya has 164,967 km of roads, 15.1% paved (24,868 km); Uganda has 146,000 km, 4.4% paved (6,466 km); Tanzania has 181,000 km, 8% paved (15,000 km),” he said.
He argued that Kenya’s relatively higher fuel prices compared to some East African countries are partly driven by the structure of levies that fund infrastructure development.
Fuel prices in Kenya include multiple taxes and charges, including the road maintenance levy, value-added tax, and other statutory charges, which collectively push retail prices higher.
Kenya also imports most of its petroleum products, exposing domestic prices to global crude oil fluctuations, shipping costs, insurance premiums, and foreign exchange movements.
These external factors, combined with local taxation, contribute to higher pump prices compared to some regional neighbours.
The debate comes shortly amid fuel prices in East Africa being shaped by global oil shocks, taxation systems and import dependence.
In Kenya, Uganda and Tanzania, prices have generally moved in parallel but at different levels due to policy and subsidies.
In Kenya, fuel has often been the highest in the region, driven by taxes, levies and import costs, with recent figures showing it at over Sh190 per litre for petrol.
Uganda’s prices have fluctuated due to import reforms and supply controls, sometimes reducing costs but remaining volatile.
Tanzania has traditionally maintained slightly lower and more stable prices due to government regulation and subsidy management.
Ledama warned that reducing fuel prices without adjusting the funding model could slow down infrastructure development unless alternative financing is identified.
“Kenya uses a fuel/roads levy, and cheaper fuel still means less road funding unless the gap is covered elsewhere,” he said.
He framed the policy debate as a trade-off between lower fuel prices and accelerated infrastructure development, stating, “the choice is simple, lower taxes and cheaper fuel with slower road development, or higher levies and stronger road expansion.”
President William Ruto has in recent months defended the government’s fiscal approach, including fuel-related taxation, arguing that such levies are necessary to finance infrastructure, reduce borrowing, and support long-term economic stability.
His administration has maintained that road development and maintenance require sustainable domestic funding sources.
Ledama also criticised political reactions to fuel pricing, urging leaders to focus on policy substance rather than blame.
“The opposition should stop turning every fuel conversation into cheap politics and blaming President Ruto for everything,” he said.
The debate highlights the broader tension between cost-of-living pressures and infrastructure financing in Kenya’s economic policy.
While consumers continue to push for lower fuel prices, policymakers face pressure to sustain road construction, maintenance, and expansion projects across the country.
Experts note that Kenya’s reliance on fuel levies reflects a common model in many developing economies, where road funding is directly tied to fuel consumption.
However, such systems are increasingly challenged by global energy transitions, fuel price volatility, and public demand for affordable transport costs.
As discussions continue, the balance between infrastructure development and affordability remains a central issue in Kenya’s energy and transport policy landscape.