Road Maintenance Levy Fund Act

LAWS OF KENYA
THE ROAD MAINTENANCE LEVY FUND ACT
CAP. 427
Revised and published by the National Council for Law Reporting
with the authority of the Attorney-General as gazetted by the Government Printer
www.kenyalaw.org

Kenya
Road Maintenance Levy Fund Act
Cap. 427
Legislation as at 31 December 2022
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Share widely and freely.

Road Maintenance Levy Fund Act (Cap. 427)
Contents
1. Short title ........................................................................................................................................................................................................... 1
2. Interpretation .................................................................................................................................................................................................... 1
3. Imposition of levy ........................................................................................................................................................................................... 2
4. Registration of remitters .............................................................................................................................................................................. 2
5. Levies collected to be remitted to the collector ................................................................................................................................. 3
6.

o the collector ................................................................................................................................. 3
6.

Defaulting remitters to pay penalty ........................................................................................................................................................ 3
6A. Recovery of levy and penalty .................................................................................................................................................................. 3
6B. Collection of levies from agents ............................................................................................................................................................ 3
6C. Recovery of levies by distress ................................................................................................................................................................. 4
7. Establishment of Road Maintenance Levy Fund .................................................................................................................................. 5
8. [Repealed by Act No. 9 of 2000, s. 130.] ............................................................................................................................................... 5
8A.

............................................................................................................................................... 5
8A.

Advisory Committee .................................................................................................................................................................................... 5
9. Offences .............................................................................................................................................................................................................. 6
10. Amendment of Schedules ......................................................................................................................................................................... 6
11. Regulations ...................................................................................................................................................................................................... 6
FIRST SCHEDULE [s. 2] ...................................................................................................................................................................................... 6
SECOND SCHEDULE [s.

................................................................................................................................ 6
SECOND SCHEDULE [s.

4] ................................................................................................................................................................................. 6
THIRD SCHEDULE ................................................................................................................................................................................................ 7

.................................................................................................................................................... 7

Road Maintenance Levy Fund Act (Cap. 427) Kenya
ROAD MAINTENANCE LEVY FUND ACT
CAP. 427
Published in Kenya Gazette Vol. XCV—No. 81 on 31 December 1993
Assented to on 16 December 1993
Commenced on 31 December 1993
[Amended by Road Maintenance Levy Fund (Amendment) Act, 1994 (Act No. 3 of 1994) on 10 June 1994]
[Amended by Road Maintenance Levy Fund (Amendment of Third
Schedule) Order, 1994 (Legal Notice 200 of 1994) on 24 June 1994]
[Amended by Finance Act, 1997 (Act No. 8 of 1997) on 19 June 1997]
[Amended by Finance Act, 1997 (Act No. 8 of 1997) on 1 July 1997]
[Amended by Finance Act, 1998 (Act No. 5 of 1998) on 11 June 1998]
[Amended by Finance Act, 2000 (Act No. 9 of 2000) on 11 June 1998]
[Amended by Finance Act, 2004 (Act No. 4 of 2004) on 10 June 2004]
[Amended by Finance Act, 2004 (Act No. 4 of 2004) on 7 January 2005]
[Amended by Road Maintenance Levy Fund (Amendment of the Third
Schedule) Order, 2005 (Legal Notice 59 of 2005) on 10 June 2005]
[Amended by Finance Act, 2005 (Act No. 6 of 2005) on 1 August 2005]
[Amended by Finance Act, 2015 (Act No. 14 of 2015) on 1 October 2015]
[Amended by Finance Act, 2022 (Act No.

005 (Act No. 6 of 2005) on 1 August 2005]
[Amended by Finance Act, 2015 (Act No. 14 of 2015) on 1 October 2015]
[Amended by Finance Act, 2022 (Act No.

22 of 2022) on 1 July 2022]
[Revised by 24th Annual Supplement (Legal Notice 221 of 2023) on 31 December 2022]
An Act of Parliament to provide for the imposition of a road maintenance levy on petroleum fuels and
for the establishment and administration of a Road Maintenance Levy Fund and for connected purposes
1. Short title
This Act may be cited as the Road Maintenance Levy Fund Act. 2. Interpretation
In this Act, unless the context otherwise requires—
"Advisory Committee" means the Advisory Committee to be appointed under section 8A;
"Cabinet Secretary" means the Cabinet Secretary for the time being responsible for Public Works and
Housing or for Public Roads;
"classified road" deleted by Act No. 3 of 1994, s. 2;
"collector" means—
(a) the Commissioner-General appointed under section 11(1) of the Kenya Revenue Authority Act (Cap. 469); or
1

No. 3 of 1994, s. 2;
"collector" means—
(a) the Commissioner-General appointed under section 11(1) of the Kenya Revenue Authority Act (Cap. 469); or
1

Road Maintenance Levy Fund Act (Cap. 427) Kenya
(b) with respect to powers or functions that have been delegated under section 11(4) of the Kenya
Revenue Authority Act (Cap. 469) to another Commissioner, that other Commissioner;
"entered for home use" has the meaning assigned to it in section 2 of the Customs and Excise Act (Cap. 472);
"levy" means the road maintenance fuel levy imposed under section 3;
"marketer" means a person who engages in the business of importing, processing and marketing of
petroleum products or in the business of both importing and processing and marketing of petroleum
products and for the time being specified in the First Schedule;
"motor vehicle" has the meaning assigned to it in section 2 of the Traffic Act (Cap. 403);
"officer administering the Fund" means the Chief Executive appointed by the Kenya Roads Board
established under section 4(1) of the Kenya Roads Board Act (Cap. 408A);
"petroleum fuel" means automotive diesel, ordinary petrol, premium petrol or such other petroleum
products as classified by reference to the tariff numbers set out in the First Schedule to the Customs and
Excise Act (Cap.

ol or such other petroleum
products as classified by reference to the tariff numbers set out in the First Schedule to the Customs and
Excise Act (Cap.

472) as the Cabinet Secretary may from time to time by notice in the Gazette determine,
and for the purpose of interpreting the said First Schedule section 2(3)(a) to (j) of the Customs and Excise
Act shall, mutatis mutandis apply;
"public road" has the meaning assigned to it in the Public Roads and Roads of Access Act (Cap. 399) and
includes an adopted street under the Streets Adoption Act (Repealed);
"remitter" means a marketer registered under section 4;
"unclassified road" means any public road which on or before the commencement of this Act is maintained
by a local authority or which is classified as such with the approval of the Cabinet Secretary, or any
adopted street under the Streets Adoption Act (Repealed);
"vehicle" includes a motor vehicle, a trailer or such other conveyance as the Cabinet Secretary may from
time to time determine by notice in the Gazette. [Act No. 3 of 1994, ss. 2, 9, Act No. 8 of 1997, s. 68, Act No. 9 of 2000, s. 128, Act No. 4 of 2004, s. 84.]
3.

e determine by notice in the Gazette. [Act No. 3 of 1994, ss. 2, 9, Act No. 8 of 1997, s. 68, Act No. 9 of 2000, s. 128, Act No. 4 of 2004, s. 84.]
3.

Imposition of levy
(1) The Cabinet Secretary shall, in consultation with the Cabinet Secretary for the time being
responsible for finance, by Order published in the Gazette, impose on any or all petroleum fuels
entered for home use in Kenya a road maintenance levy (in this Act referred to as "the levy") which
may be determined from time to time and in such manner as the Cabinet Secretary may specify in
the Order. (2) Out of the levy collected under subsection (1) there shall be paid an amount of three shillings
per litre of petroleum sold into the Road Annuity Fund established under the Public Finance
Management Act (Cap. 412A) to fund the construction of roads under the Road Annuity Programme
and similar roads approved by the National Assembly. [Act No. 3 of 1994, s. 3, Act No. 14 of 2015, s. 46, Act No. 22 of 2022, s. 59.]
4.

ity Programme
and similar roads approved by the National Assembly. [Act No. 3 of 1994, s. 3, Act No. 14 of 2015, s. 46, Act No. 22 of 2022, s. 59.]
4.

Registration of remitters
(1) Any person who—
(a) at the commencement of this Act is a marketer shall, on or before the expiration of thirty
days after such commencement, register as a remitter; or
(b) on or after the commencement of this Act becomes a marketer, shall before the last day of
the month immediately following the month in which he becomes a marketer register as a
remitter. 2

ct becomes a marketer, shall before the last day of
the month immediately following the month in which he becomes a marketer register as a
remitter. 2

Road Maintenance Levy Fund Act (Cap. 427) Kenya
(2) Registration under subsection (1) shall be effected when the marketer has duly completed the
registration form set out in the Second Schedule and lodged the original with the Chief Engineer
(Roads) or Head of the Roads Department in the Ministry for the time being responsible for roads. (3) A remitter who ceases either permanently or temporarily to be a marketer shall, within thirty days
of so ceasing, notify the collector accordingly in writing stating the reasons for his ceasing to be a
remitter. (4) The Chief Engineer (Roads) or the Head of the Roads Department in the Ministry for the time being
responsible for roads shall in all cases notify the collector of all marketers registered or deregistered
under this Act. (5) On the commencement of this Act no petroleum shall be allowed to be entered for home use unless
the marketer has been duly registered under subsection (2). [Act No. 3 of 1994, ss. 4 and 9.]
5.

um shall be allowed to be entered for home use unless
the marketer has been duly registered under subsection (2). [Act No. 3 of 1994, ss. 4 and 9.]
5.

Levies collected to be remitted to the collector
(1) A remitter shall pay the levy to the collector at the time of importation of the petroleum fuel or at
the time of its delivery from the refinery, in such form and manner as the collector may direct. (2) Payment of the levy under subsection (1) shall be accompanied by Form 2 set out in the Third
Schedule. (3) A remitter shall keep a record of volumes of petroleum fuels imported and levies paid and submit to
the Cabinet Secretary a return in the manner prescribed in Form 3 set out in the Third Schedule. (4) The collector shall keep a record of the volumes of petroleum fuels imported and levies paid and
submit to the Cabinet Secretary a return in the manner prescribed in Form 4 set out in the Third
Schedule. [Act No. 3 of 1994, s. 5, Act No. 6 of 2005, s. 47.]
6. Defaulting remitters to pay penalty
(1) Where any amount of levy which is payable under this Act remains unpaid after the date when it
becomes due and payable as specified in section 5(1), a penalty equal to three per centum of the
unpaid amount shall be forthwith due and payable for each month or part thereof that the amount
remains unpaid.

nalty equal to three per centum of the
unpaid amount shall be forthwith due and payable for each month or part thereof that the amount
remains unpaid.

(2) A penalty imposed under subsection (1) shall be recoverable as if it were a levy. [Act No. 3 of 1994, s. 5A.]
6A. Recovery of levy and penalty
Any levy or penalty imposed under this Act shall be summarily recovered as a civil debt due by the
collector in accordance with the provisions of the Customs and Excise Act (Cap. 472) as if it were duty due
and payable under that Act. [Act No. 3 of 1994, s. 6.]
6B. Collection of levies from agents
(1) The collector may, by written notice addressed to any person (in this section called the agent)
appoint him to be the agent of another person (in this section called the principal) for the purposes
of collecting levies from the principal where the collector is satisfied that the agent—
(a) owes or is about to pay money to the principal;
3

urposes
of collecting levies from the principal where the collector is satisfied that the agent—
(a) owes or is about to pay money to the principal;
3

Road Maintenance Levy Fund Act (Cap. 427) Kenya
(b) holds money for or on account of the principal;
(c) holds money on account of some other person to pay money to the principal; or
(d) has authority from some other person to pay money to the principal. (2) The collector shall, in the notice under subsection (1), specify the amount of levies to be collected
by the agent, which amount shall not exceed the amount held or owing by the agent for or to the
principal. (3) The collector may, by notice in writing, require any person to furnish the collector, within a
reasonable time not being less than thirty days from the date of service of the notice, with a return
showing details of any moneys which may be held by that person for or on account of a person from
who levies are due. (4) An agent who claims to be, or to have become, unable to comply with the notice for any reason
shall, as soon as may be practicable, notify the collector accordingly in writing stating the reasons
for his inability, and the collector may accept and cancel, amend or reject the notification as he may
think fit.

ingly in writing stating the reasons
for his inability, and the collector may accept and cancel, amend or reject the notification as he may
think fit.

(5) Notwithstanding subsection (4), and agent shall be presumed to be holding sufficient money for the
payment of the levies specified in the notice unless his notification under subsection (4) is accepted
or amended, and in any proceedings for the collection of those levies he shall be estopped from
asserting the lack of those moneys. (6) Where an agent fails to remit any amount of levies specified in the notice, within thirty days of
the date of service of the notice on him or of the date on which any moneys came into his hands
for, or become due by him to, his principal, whichever is the later, and he has not complied with
subsection (4) then the provisions of this Act relating to the collection and recovery of levies shall
apply as if they were levies due and payable by him from the date when such levies should have
been paid to the collector.

nd recovery of levies shall
apply as if they were levies due and payable by him from the date when such levies should have
been paid to the collector.

(7) An agent who has made payment of levies under this section shall for all purposes be deemed to
have accepted therein with the authority of his principal and of all other persons concerned, and
shall be indemnified in respect of that payment against any proceedings civil or criminal and all
process, judicial or extrajudicial, notwithstanding any provisions to the contrary in any written law,
contract or agreement. (8) A person who, in giving a notification under subsection (4), wilfully makes any false or misleading
statement, or wilfully conceals any material fact, shall be guilty of an offence and liable to a fine not
exceeding two hundred thousand shillings or to imprisonment for a term of not more than three
years or to both. [Act No. 4 of 2004, s. 85.]
6C. Recovery of levies by distress
(1) If a levy remains unpaid after the time it was required, under this Act, to be paid, the Collector may
authorize distress to be levied upon goods, chattels and effects of the person who should have paid
the levy wherever those goods, chattels and effects may be found. (2) The following provisions of the Customs and Excise Act (Cap.

ho should have paid
the levy wherever those goods, chattels and effects may be found. (2) The following provisions of the Customs and Excise Act (Cap.

472) shall apply, with necessary
modifications, with respect to distress authorized under subsection (1)—
(a) section 225(2), (3) and (4);
(b) the Sixth Schedule. [Act No. 4 of 2004, s. 85.]
4

ions, with respect to distress authorized under subsection (1)—
(a) section 225(2), (3) and (4);
(b) the Sixth Schedule. [Act No. 4 of 2004, s. 85.]
4

Road Maintenance Levy Fund Act (Cap. 427) Kenya
7. Establishment of Road Maintenance Levy Fund
(1) There is thereby established a fund to be known as the Road Maintenance Levy Fund (in this Act
referred to as the "Fund") which shall be administered by the officer administering the Fund. (2) The Fund shall consist of the proceeds from the levy and the transit tolls levied under the Public
Roads Toll Act (Cap. 407). (3) All monies accruing to the Fund from the levy and transit tolls shall be paid into two special
accounts to be established by the Kenya Roads Board namely, a general account and a local
authority account.

nsit tolls shall be paid into two special
accounts to be established by the Kenya Roads Board namely, a general account and a local
authority account.

(3A) The monies accruing to the Fund from the levy shall be paid into the accounts established under
subsection (3) in the following amounts—
(a) in the 1998/1999 financial year, thirty percent of the printed estimates of the 1997/1998
road maintenance levy collections into the local authority account, and the balance into the
general account;
(b) in the 1999/2000 financial year, forty percent of the printed estimates of the 1997/1998
road maintenance levy collections into the local authority account, and the balance into the
general account;
(c) in the 2000/2001 and subsequent financial year, fifty percent of the printed estimates of
the 1997/1998 road maintenance levy collections into the local authority account, and the
balance into the general account;
(d) in any financial year such amount as may be determined by objective estimates of the annual
road maintenance costs of unclassified roads reduced by any annual expenditures by local
authorities on the maintenance of such roads. (4) (a) There shall be paid out of the general account of the Fund, such monies as are approved for
repair and maintenance of public roads.

uch roads. (4) (a) There shall be paid out of the general account of the Fund, such monies as are approved for
repair and maintenance of public roads.

(b) There shall be paid out of the local authority’s account of the Fund, such monies as may be
approved by the Advisory Committee for the repair and maintenance of unclassified roads. (5) All receipts, savings and accruals to the Fund and the balance of the Fund at the end of each
financial year shall be retained for the purposes for which the Fund is established. (6) Repealed by Act No. 9 of 2000, s. 129. [Act No. 3 of 1994, s. 7, Act No. 8 of 1997, s. 69, Act No. 5 of 1998, s. 66, Act No. 9 of 2000, s. 129.]
8. [Repealed by Act No. 9 of 2000, s. 130.]
8A. Advisory Committee
The officer administering the Fund shall, by order published in the Gazette, establish an Advisory
Committee to advise him on the manner of allocation of the funds in the local authority account of the
Fund comprising—
(a) two persons appointed by the Permanent Secretary of the Ministry for the time being responsible
for local government, one of whom shall be appointed chairman;
(b) two persons appointed by the Permanent Secretary of the Ministry the time being responsible for
Public Works; and
(c) two persons appointed by the Permanent Secretary of the Ministry for the time being responsible
for finance.

ing responsible for
Public Works; and
(c) two persons appointed by the Permanent Secretary of the Ministry for the time being responsible
for finance.

[Act No. 8 of 1997, s. 70.]
5

[Act No. 8 of 1997, s. 70.]
5

Road Maintenance Levy Fund Act (Cap. 427) Kenya
9. Offences
(1) Any person who, without reasonable cause, fails to comply with an Order made under section 3 or
refuses to pay the levy, shall be guilty of an offence and liable to a fine not exceeding three million
shillings or to imprisonment not exceeding three years or to both. (2) A marketer who, without reasonable cause, fails or refuses to register under section 4 as a remitter
shall be guilty of an offence and liable to a fine not exceeding fifty thousand shillings or to
imprisonment not exceeding one year or to both, and without prejudice to sections 6 and 6A the
collector shall in any such case assess and collect any monies due to the Fund notwithstanding any
penalty imposed on the marketer under this section. [Act No. 3 of 1994, ss. 8 and 9.]
10. Amendment of Schedules
The Cabinet Secretary may by notice published in the Gazette amend any of the Schedules. 11. Regulations
The Cabinet Secretary may make regulations generally as may appear to him necessary or expedient for
the proper carrying out of the intent and purposes of this Act. FIRST SCHEDULE [s. 2]
LIST OF MARKETERS
[Act No. 3 of 1994, s. 9.]
1. Esso Kenya Limited. 2.

oper carrying out of the intent and purposes of this Act. FIRST SCHEDULE [s. 2]
LIST OF MARKETERS
[Act No. 3 of 1994, s. 9.]
1. Esso Kenya Limited. 2.

Kenya Shell Limited. 3. Total Kenya Limited. 4. Caltex Oil (Kenya) Limited. 5. Agip (Kenya) Limited. 6. Kobil Petroleum Limited. 7. Kenya Oil Company. 8. British Petroleum (BP Kenya) Limited. SECOND SCHEDULE [s. 4]
FORM
[Act No. 3 of 1994, s. 9]
Form 1
REGISTRATION FORM
Registration of marketer as required by section 4 of the Road Maintenance Levy Fund Act. 1. Name of Marketer ..................................................................... 2. Postal Address ........................................................................ 6

......................................................... 2. Postal Address ........................................................................ 6

Road Maintenance Levy Fund Act (Cap. 427) Kenya
3. Place of Business..................................................................... Road/Street .......................................................... Town .................................................................... 4. Date .......... Signed .............................................. Note:- This registration form must be forwarded to Chief Engineer Roads, Ministry of Public Works and
Housing, P.O. Box 30260, Nairobi. THIRD SCHEDULE
FORM FOR PAYMENT OF LEVY
[L.N. 59 of 2005, s. 2.]
FORM 2
(In Triplicate)
(s. 5(2))
REPUBLIC OF KENYA
MINISTRY OF ROADS AND PUBLIC WORKS
ROAD MAINTENANCE FUND ACT (CAP. 427)
To be completed by remitter. 1. Name of Remitter ................................................................ 2. Personal Identification Number (PIN) ............................................ 3. Customs Code Number ............................................................ 4. Address of remitter .............................................................. 6. Petroleum fuels entered for home use and the levy payable:
Tariff number Tariff description Quantity entered (litres
1,000s)
Amount of levy payable
.

Petroleum fuels entered for home use and the levy payable:
Tariff number Tariff description Quantity entered (litres
1,000s)
Amount of levy payable
.

. TOTAL LEVY PAYABLE
I CERTIFY that the levy payable to the Commissioner of Customs is Kshs ........... for which payment has
been made vide ......................................... 7

Road Maintenance Levy Fund Act (Cap. 427) Kenya
Date ............................................... Signed ................................................
(Remitter)
_______________________________________________________________________________________
(For Official Use Only)
Amount received:
Kshs ................................................................
Date ..................................... Signed .............................................
For: Commissioner of Customs
___________________________
FORM 3
(In Triplicate)
(s. 5(2))
REPUBLIC OF KENYA
ROADS MAINTENANCE FUND ACT (Cap. 427)
RETURN OF ROAD MAINTENANCE LEVY BY MARKETER TO CABINET SECRETARY
To be completed by Remitter
For the month of ....................................................
PRODUCT VOLUME LEVY PAID (KSHS)
.
.
Total
Name of Remitter .......................... Pin No .........................
Date .......................................
8

LEVY PAID (KSHS)
.
.
Total
Name of Remitter .......................... Pin No .........................
Date .......................................
8

Road Maintenance Levy Fund Act (Cap. 427) Kenya
Signed .......................................................
Remitter
___________________________
FORM 4 (s. 5(4))
REPUBLIC OF KENYA
ROADS MAINTENANCE FUND ACT (Cap. 427)
RETURN OF ROAD MAINTENANCE LEVY BY COLLECTOR
MARKETER TYPE OF
PETROLEUM
PRODUCTS &
VOLUMES
LEVY PAID
Motor
Spirit
Super
Motor
Spirit
Regular
Automotive
Diesel
TOTAL
Date .............................................
Signed .............................................
For: Commissioner of Customs
9