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Kenyan motorists are set to face new toll fees and taxes as the government moves to introduce road tolling as a primary revenue source for infrastructure development, maintenance, and rehabilitation.
The newly released Draft Tolling Policy 2025 outlines a plan to impose user fees on both newly constructed and existing roads, a move the government says will help bridge a Sh 4.05 trillion funding gap in the road sector over the next decade.
The policy, developed by the Ministry of Roads and Transport, aims to address Kenya’s deteriorating road infrastructure while reducing reliance on fuel levies, which have seen a decline due to the rise of electric vehicles (EVs) and fuel-efficient cars.
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New Charges Motorists Will Face
The policy introduces several new charges that will directly impact road users:
Road Tolls – Motorists will pay a fee for using designated toll roads. These charges will be determined based on vehicle classification and road usage.
Polluter Pays Principle – High-emission vehicles may face extra levies as part of the government’s climate change strategy.
Insurance Premium Tax – The government is considering taxing motor vehicle insurance premiums as an alternative financing method.
Mandatory Toll Payments – Motorists with unpaid tolls could be denied National Transport and Safety Authority (NTSA) services, including vehicle registration, licence renewal, and annual inspections.
Heavier Fines for Overloaded Vehicles – Trucks and buses exceeding axle weight limits will face higher fines, which will now be directly collected by toll operators.
The Kenya Roads Board (KRB) estimates that the country needs Sh253.5 billion annually for road maintenance, but the projected fuel levy collection for 2024/25 is only Sh100 billion.
This shortfall has prompted the government to seek new revenue streams, with tolling positioned as a sustainable alternative.
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Which Roads Will Be Affected?
The tolling policy will apply to:
New roads and highways, particularly those developed under Public-Private Partnerships (PPPs).
Upgraded roads, where significant improvements have been made to justify tolling.
High-traffic corridors, including expressways and intercity highways.
Urban roads, where congestion pricing could be introduced to manage traffic flow.
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The government clarified that tolls will only be implemented where collection costs do not exceed 15% of projected revenue and where economic benefits outweigh the financial burden on motorists.
Exemptions
Exemptions will apply to ambulances, police vehicles, fire trucks, and military vehicles.
Discounts may also be provided for frequent road users, electric vehicles, and high-occupancy vehicles.
Implementation Timeline
The policy is expected to take effect by mid-2025, with the National Tolling Authority overseeing toll collection and management. Motorists will be required to register for an Electronic Toll Collection (ETC) system, with penalties for non-payment.
With Kenya moving towards a user-funded road network, motorists must now prepare for additional costs when using the country’s highways and urban roads.