Budget and
Appropriations committee chairperson Sam Atandi during a past event/FILEBudget and Appropriations Committee chairperson Samuel Atandi has defended the government's decision to securitise part of the Road Maintenance Levy Fund (RMLF).
Atandi downplayed the criticism from his predecessor, Kiharu MP Ndindi Nyoro, suggesting that his concerns might be influenced by his recent transition from the committee leadership.
"There is nothing illegal about the securitisation of a proportion of the fuel levy," he said.
“Obsession by Hon Ndindi Nyoro on this subject has everything to do with his own objections, 'power hangover' and entitlement over sharing of public resources.”
While addressing the press on Tuesday, Nyoro sharply criticised the government on the causes of the surge in fuel prices.
He dismissed the official account that international oil prices are to blame for the rise as misleading, pointing out that "global oil prices peaked last year, not this year," a claim supported by market data.
Nyoro argued that domestic factors, specifically “excessive taxation and the securitisation of fuel levies”, were the real causes behind the spike in pump prices.
“In an oil-importing country like Kenya, the only effective tool the government has to stabilise fuel prices is adjusting taxes. Sadly, this is where the government is failing,” he said.
He highlighted that Kenyans pay over Sh80 per litre of petrol and Sh76 for other fuels in direct taxes and levies.
According to Nyoro, the government quietly added a Sh7‑per‑litre levy in 2023, despite falling global prices, thereby preventing relief at the pump.
However, Atandi maintained that Nyoro’s claims were merely political rhetoric. He alleged that his (Nyoro) focus is more about restoring “his seat at the real table”, the BAC leadership, rather than genuine concern over public finances.
Roads and Transport Cabinet Secretary Davis Chirchir recently defended the move, saying the government has already used the fuel levy to pay at least 40 per cent of pending bills owed to road contractors,” thereby reviving stalled road works.
The fuel levy securitisation is a standard financial mechanism whereby part of the levy is committed to private investors via a Special Purpose Vehicle (SPV), allowing contractors to be paid promptly while investors bear the revenue risk.
The securitisation initiative mobilised approximately Sh175 billion, using Sh7 of every Sh25 from the levy to back the facility.
The funds have since been used to clear historical contractor debts and restart stalled projects.
