The State Department for Roads under Cabinet Secretary Kipchumba Murkomen will raise ksh71 billion through Appropriation in Aid (AIA) for the year ending June 30, 2025.
AIA entails road levies, toll charges, and other user fees that will be collected from Kenyan road users.
This was outlined in the Appropriation Bill 2024 presented in Parliament on Tuesday, June 18.
In the Bill, Ksh1.6 billion will be allocated to the State Department by the National Government bringing the total amount for the department to Ksh72.6 billion.
“Appropriation in Aid (AIA) is the spending that the agency will apply from the cash collected from user fees,” Economist Kwame Owino stated on the Ksh71 billion.
On why there was a difference between money issued by the exchequer and AIA, economist Sam Okumu explained, "Appropriation in aid refers to internally generated funds which the department is allowed to expend including levies or any other charges.”
On the other hand, the Ksh1.6 billion from the exchequer is what will be expected externally from the consolidated fund.
The Ksh72.6 billion will be used to improve road transport in the republic.
Of note, the State Department of Transport will receive Ksh2.3 billion from the exchequer with an additional Ksh14 billion raised through AIA.
Ksh1.3 billion of that sum will be used for general administration, planning and support services.
Rail transport will be allocated Ksh686 million with Ksh21 million going towards the improvement of marine transport.
Air transport which falls under the State Department will receive Ksh104 million from the exchequer and Ksh11 billion received through AIA.
Lastly, under Kipchumba Murkomen’s ministry, Ksh2.5 billion will be used to enhance road safety with Ksh2.3 billion of that amount raised through AIA.
