Road Maintenance Levy Fund Act

Cap. 427

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Cap. 427
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LAWS OF 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
  1. [Amended by Road Maintenance Levy Fund (Amendment) Act, 1994 (Act No. 3 of 1994) on 10 June 1994]
  2. [Amended by Road Maintenance Levy Fund (Amendment of Third Schedule) Order, 1994 (Legal Notice 200 of 1994) on 24 June 1994]
  3. [Amended by Finance Act, 1997 (Act No. 8 of 1997) on 19 June 1997]
  4. [Amended by Finance Act, 1997 (Act No. 8 of 1997) on 1 July 1997]
  5. [Amended by Finance Act, 1998 (Act No. 5 of 1998) on 11 June 1998]
  6. [Amended by Finance Act, 2000 (Act No. 9 of 2000) on 11 June 1998]
  7. [Amended by Finance Act, 2004 (Act No. 4 of 2004) on 10 June 2004]
  8. [Amended by Finance Act, 2004 (Act No. 4 of 2004) on 7 January 2005]
  9. [Amended by Road Maintenance Levy Fund (Amendment of the Third Schedule) Order, 2005 (Legal Notice 59 of 2005) on 10 June 2005]
  10. [Amended by Finance Act, 2005 (Act No. 6 of 2005) on 1 August 2005]
  11. [Amended by Finance Act, 2015 (Act No. 14 of 2015) on 1 October 2015]
  12. [Amended by Finance Act, 2022 (Act No. 22 of 2022) on 1 July 2022]
  13. [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
(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. 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. 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. 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)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. 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.
(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;
(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.
(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.
(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. 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.]

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

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.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 ........................................................................
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 KENYAMINISTRY 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 numberTariff descriptionQuantity 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 .........................................
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 ....................................................
PRODUCTVOLUMELEVY PAID (KSHS)
..  
Total  
Name of Remitter .......................... Pin No .........................Date .......................................
 Signed .......................................................Remitter

___________________________

   
FORM 4 (s. 5(4))
REPUBLIC OF KENYA
ROADS MAINTENANCE FUND ACT (Cap. 427)
RETURN OF ROAD MAINTENANCE LEVY BY COLLECTOR
MARKETERTYPE OF PETROLEUM PRODUCTS & VOLUMES  LEVY PAID
 MotorSpiritSuperMotorSpiritRegularAutomotiveDiesel 
     
TOTAL    
Date ............................................. 
 Signed .............................................For: Commissioner of Customs
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History of this document

31 December 2022 this version
01 July 2022
Amended by Finance Act, 2022
Read this version
01 October 2015
Amended by Finance Act, 2015
Read this version
01 August 2005
Amended by Finance Act, 2005
10 June 2005
07 January 2005
Amended by Finance Act, 2004
10 June 2004
Amended by Finance Act, 2004
11 June 1998
Amended by Finance Act, 1998
Amended by Finance Act, 2000
01 July 1997
Amended by Finance Act, 1997
19 June 1997
Amended by Finance Act, 1997
24 June 1994
10 June 1994
31 December 1993
Commenced
16 December 1993
Assented to

Subsidiary legislation

Title
Date
The Road Maintenance Levy Fund (Imposition of Levy) Order Legal Notice 46 of 2006 31 December 2022
The Road Maintenance Levy Fund (Imposition of Levy) Order, 2000
Repealed
Legal Notice 138 of 2000 24 November 2000
The Road Maintenance Levy Fund (Imposition of Levy) Order, 1999
Repealed
Legal Notice 79 of 1999 10 June 1999
The Road Maintenance Levy Fund (Imposition of Levy) Order, 1998
Repealed
Legal Notice 28 of 1998 13 March 1998
The Road Maintenance Levy Fund (Imposition of Levy) Order, 1997
Repealed
Legal Notice 139 of 1997 25 July 1997