The National Treasury is proposing a 50 percent reduction in the fuel levy allocated to the Road Annuity Fund, a move aimed at saving motorists an estimated Ksh75 per tank.

• The proposal, detailed in the Road Maintenance Levy Fund (Amendment) Bill, 2026, would halve the portion of the levy directed to the fund, from Ksh3 to Ksh1.50 per litre.
• This change could save motorists approximately 80 cents for every Ksh100 spent on fuel.
• The cut comes amid concerns about the existing securitization of a significant portion of the fuel levy, which has already committed Ksh12 per litre to bondholders.