Road and transport Cabinet secretary Kipchumba Murkomen has come out to explain reasons behind the increase in toll charges for using the Nairobi expressway.
In a post in X while responding to Alego Usonga MP Sam Atandi. He said that the increase in tax is proportional to the depreciation of the Kenya shilling to the united States dollar.
According to him, the adjustment is covered in the project agreement established in 2021, and the toll rates were gazetted in April 2022, hence his ministry and the government has no choice but to abide by it.
“If you take the maximum increase which is from 360 to 500 you will get a difference of 140 shillings. If you divide Ksh 140 by Ksh 360 and multiply by 100 you get 38.89%. Now the last adjustment was done when one dollar was equal to Kshs 113.14. Now the dollar is Ksh 157 and using the same method i.e 157 minus 113 which is equal to 44. Divide 44 by 113 and multiply by 100 you get 38.9% so the increase is proportional,” he wrote.
He added that the adjustment was taken taking into consideration the agreement signed in the project and not foregoing the depreciation of shillings.
“The adjustment was done based on the project agreement taking into account the depreciation of the Kenyan shilling to the United states dollar since the time of gazettement of the toll rates in April 2022. The formulae for computing the new rates is already embedded in the agreement taking into account the loan facility by the investor which was borrowed in USD.” He told.
He added that: “The good thing about express way is first the government of Kenya did not give traffic volume guarantee otherwise the taxpayer would now be paying a lof from the intrest accrued and inflation plus the difference unmet by the less traffic flow. Second, the consumer has alternative route which is not tolled.”
CS had earlier announced that the government had increased the charges for using the Nairobi express way from the current range of ksh 100 to Ksh 310 to a new range of Ksh 170 to Ksh 500 across all the stations along Mlolongo-Westlands route.
This was announced in a gazette notice dated 31 December 2023. Saying the rates to take effect immediately.
With this new rates, motorists entering the express way on Mlolongo and exiting at the SGR station and the Eastern Bypass will be required to pay Ksh 250 up from the current Ksh 100, while those exiting at the southern Bypass will pay ksh 330 up from Ksh 210.
On the same route vehicles exiting at capital hill and Haile Selassie stations will pay Ksh 410 up from Ksh 210. Exits at Museum Hill, The Mall and Nairobi Westland’s terminus will pat with Ksh 500 rate up from Ksh 310.
