MPs demand KeRRA submit project certificates amid road levy discrepancies

The Kenya Rural Roads Authority (KeRRA) has been ordered to submit completion certificates for all ongoing and completed projects within two weeks, following concerns over delays and financial discrepancies in the Roads Maintenance Levy Fund (RMLF).

On Thursday, the Special Funds Accounts Committee summoned KeRRA’s acting Managing Director, Jackson Magondu, to respond to audit queries raised by the Office of the Auditor General for the 2022/2023 and 2023/2024 financial years.

During the session, chaired by North Imenti MP Rahim Dawood, members were told that in the 2022/2023 financial year, KeRRA continued implementing projects without valid time extensions and failed to resolve prior-year issues previously discussed with the committee.

Magondu attributed the delays to challenging weather conditions in regional offices and inadequate funding, which he said affected project timelines, particularly for small-scale projects.

“The delays are mainly due to prevailing weather conditions within the regional offices and the lack of funding, which all contribute to project delays, especially for small projects,” he said.

No supporting evidence

The committee also scrutinised KeRRA’s handling of the 2023/2024 financial year, noting that Sh3,696,888,000 had been transferred from the Fund’s bank account to KeRRA’s operations account without supporting evidence.

This sum represented 13 per cent of total fund expenditure, exceeding the 5.5 per cent limit stipulated in section 6(1) of the Kenya Roads Act, 1999, which restricts operational transfers to this ceiling.

In response, Magondu argued that the 5.5 per cent limit applies to the global RMLF, not specifically to funds remitted to KeRRA, citing the Kenya Roads Act, 2007, fifth schedule.

“The maximum allowable amount for operations for FY 2023/2024 was Sh3,846,887,917 as guided by the project funding ceiling from the Kenya Roads Board,” he said.

The committee, however, remained unconvinced and instructed KeRRA to provide all relevant documents, including project completion certificates, to the Auditor-General within two weeks for further review.

Certificates of completion

“The Committee hereby directs that KeRRA provide the certificates of completion and any other documents to the Office of the Auditor General within two weeks,” Rahim said.

The Road Maintenance Levy Fund, established by Parliament in 1993, is a vital source of funding for road upkeep and development across Kenya. It ensures roads are maintained in good condition, supports economic growth, and improves livelihoods by enhancing connectivity.

The Kenya Roads Board (KRB) collects and distributes the funds to road agencies, including KeRRA, the Kenya National Highways Authority (KeNHA), and the Kenya Urban Roads Authority (KURA). These agencies are responsible for maintaining both rural and urban roads to high standards, improving transport safety, facilitating trade, and reducing transport costs.

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Since its inception, the levy has strengthened rural road networks, particularly by increasing farmers’ access to markets. It supports regular maintenance, aligns with Sustainable Development Goals, and facilitates economic activity.

Initially set at Sh18 per litre, the levy was increased to Sh25 per litre starting in FY2024/25. The RMLF remains a cornerstone of Kenya’s infrastructure maintenance and development strategy.