Why Expressway Charges Have Been Increased

Cabinet Secretary of transport Kipchumba Murkomen Monday explained why the the government increased Expressway toll fees.

Murkomen attributed the increased fees to the depreciation of the Kenya Shilling to the United States dollar , adding that the adjustment was done based on the project agreement following the gazettement of the Toll rates in April 2022.

This is despite the project being done under the Build, Operate and Transfer program.government guaranteed minimum annual revenue in dollars. If not raised, , government covers the deficit.Murkomen said his office and that of the government of Kenya have no discretion but to follow the agreement as established in 2021.

“The good thing about Expressway is first that the government of Kenya did not give a traffic volume guarantee; otherwise, the taxpayer would now be paying a lot from the interest accrued and inflation plus the difference to unmet by less traffic flow,” Kipchumba said.
“Second, the consumer has an alternative route which is not tolled.”
Murkomen said the state had not increased the fees by 50 per cent, but by 38.89 per cent.

“If you take the maximum increase, which is from 360 to 500, you will get a difference of Sh140. If you divide Sh140 by Sh360 and multiply by 100 you will get 38.89%. Now the last adjustment was done when one dollar was equal to Sh113.14,” Murkomen explained.

“Now the dollar is Sh157, and using the same method, i.e. 157 minus 113, which is equal to 44,. Divide 44 by 113 and multiply by 100, and you will get 38.9 %. So the increase is proportional.”


Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *