Thursday, February 22, 2024

Murkomen breaks silence over hiked Nairobi expressway charges

Roads and Transport CS Kipchumba Murkomen has broken his silence over the increased charges on the Nairobi expressway.

Responding to a question by Hon. Sam Atandi, the CS noted that increase is equivalent to 38% and not 50% as called for by the MP.

“Hallo Mhesh, first the increase is not 50%. If you take the maximum increase which is from 360 to 500 you will get a difference of 140 Shillings. if you divide Kshs 140 by Kshs 360 and multiply by 100 you will 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 and you will get 38.9 %. So the increase is proportional.” said the CS

He continued by saying that the increase is in regard to the depreciating Kenya shilling to the US Dollar and since the loan was taken in USD, then it makes sense to hike the prices.

“The adjustment was done based on the Project Agreement taking into account the depreciation of the Kenya 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 using USD ( as a banker you will understand more) The Cabinet Secretary and the government of Kenya have no discretion but to follow the agreement as established in 2021.

The good thing about express way is first that the government of Kenya did not give traffic volume guarantee otherwise the taxpayer would now be paying a lot from the interest accrued and inflation plus the difference unmet by less traffic flow. Second, the consumer has alternative route which is not tolled.” said Murkomen

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