NAIROBI, Kenya – The National Assembly has ordered a forensic audit into fuel levy collections and disbursements amid concerns over unexplained discrepancies running into billions of shillings at the Kenya Roads Board (KRB).
The Public Investment Committee on Commercial and Energy Affairs has instructed Auditor-General Nancy Gathungu to examine fuel levy revenue for the 2020/21 to 2022/23 financial years, following audit queries that raised questions about whether funds collected for road maintenance reached the intended agencies.
Lawmakers want the probe to establish the exact amounts collected by the Kenya Revenue Authority (KRA), transferred to the Kenya Roads Board, and eventually disbursed to road agencies, including the Kenya Urban Roads Authority (KURA).
The move follows revelations by the Auditor-General that receivables from non-exchange transactions under the Road Maintenance Levy Fund stood at Sh5.53 billion, while grants owed by the roads board amounted to Sh5.08 billion.
Gathungu further flagged inconsistencies in KRB’s financial statements, noting a variance of Sh2.76 billion in funds reportedly payable to KURA that was neither explained nor reconciled.
“However, the audited financial statements of the Kenya Roads Board reflect Road Maintenance Levy Fund disbursement payable to Kenya Urban Roads Authority balance of Sh2,322,321,695 resulting in a variance of Sh2,755,302,399, which was not explained or reconciled,” she said.
“As a result, the completeness and accuracy of grant receivables amounting to Sh5,177,634,094 could not be confirmed.”
Appearing before the committee chaired by Pokot South MP David Pkosing, KURA Director-General Silas Kinoti maintained that the disputed grants had been properly recorded and were received at the start of the 2022/23 financial year.
Nevertheless, the committee directed the Auditor-General to proceed with a forensic audit to clarify the revenue trail.
“The committee directs the Auditor-General to carry out a forensic audit on the revenue generated by the Kenya Roads Board from the fuel levy for the financial years 2020/21 to 2022/23,” Pkosing said.
“The audit should confirm the amount collected by KRA, the amount disbursed to the roads board, and what was ultimately transferred to road agencies.”
Beyond revenue discrepancies, MPs raised alarm over ballooning pending bills at KURA, warning that delayed payments could cripple operations and strain cash flow.
According to the Auditor-General, KURA’s payables from exchange transactions had reached Sh15.4 billion, including Sh14.15 billion owed to suppliers and contractors.
This marked a 25 per cent increase from Sh12.28 billion recorded the previous year.
“The rise exposed the authority to unnecessary and avoidable costs arising from interest claims and penalties on late payments to contractors,” Pkosing said.
The committee has also asked KURA to submit, within three months of the report’s adoption, a detailed update on plans to securitise the Road Maintenance Levy Fund and progress made in settling outstanding bills.
