Government Introduces Incentives for Electric Vehicles as National Tolling Policy Looms

Kakamega: Electric Vehicles (EVs) in Kenya are set to receive discounts and incentives as the government prepares to implement the National Tolling Policy, currently open for public participation. The policy, aimed at creating sustainable revenue for ...

Kakamega: Electric Vehicles (EVs) in Kenya are set to receive discounts and incentives as the government prepares to implement the National Tolling Policy, currently open for public participation. The policy, aimed at creating sustainable revenue for road maintenance and rehabilitation, will see EVs benefit due to their lower carbon emissions.

According to Kenya News Agency, Engineer Billy Kimko from the Kenya Roads Board highlighted during a public engagement in Kakamega that the discounts would also extend to high-occupancy private vehicles and those traveling short distances. These discounts are designed to ensure charges are proportional to road usage frequency. Exemptions from toll charges will apply to military, police, ambulance, and fire service vehicles.

The proposed policy comes in response to reduced funding from international lenders and anticipated declines in Roads Maintenance Fuel Levy (RMFL) collections due to the rise of e-mobility. Eng. Kimko noted a significant shortfall in the 2024/2025 budget for road maintenance, with RMFL providing only Sh100 billion against the required Sh253 billion.

Kenya’s road network spans 239,122 kilometers, with the majority under national government classification. The government is exploring alternative funding sources, including Public-Private Partnerships (PPP), akin to the Nairobi Expressway project, to bridge funding gaps.

Tolling will be introduced on newly constructed, improved, and higher-quality roads, with a vehicle identification and registration system linked to automatic number plate recognition. Initially, conventional toll charging points and pre-paid payment systems will be used.

Engineer Kennedy Nyabuto, Deputy Director and Technical Working Group Team Leader on the National Tolling Policy, emphasized the policy’s alignment with the National Funding Policy to secure more funds for road maintenance.

At the Kakamega forum, participants expressed concerns about the neglect of rural roads. They urged the government to ensure equitable fund distribution for road maintenance. Matatu operator Simon Shiundu criticized the policy as double taxation, given existing Public Service Vehicle charges.

The Transport Cabinet Secretary and National Treasury counterpart will set initial toll charges, which will be adjusted quarterly for inflation, exchange rate, tax changes, and economic growth. Non-payment of toll fees could result in a Sh50,000 fine or a six-month jail term.

The technical working group on the National Tolling Policy is scheduled to meet with the Parliamentary committee on roads and infrastructure on March 31, before the policy undergoes validation and Cabinet approval.

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