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Post Reply: National Assembly Secures Temporary Relief in Road Fund Dispute

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on July 26, 2025, 6:00 am</div><div id="pl-7247"  class="panel-layout" ><div id="pg-7247-0"  class="panel-grid panel-no-style" ><div id="pgc-7247-0-0"  class="panel-grid-cell"  data-weight="1" ><div id="panel-7247-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{&quot;background_image_attachment&quot;:false,&quot;background_display&quot;:&quot;tile&quot;,&quot;background_image_size&quot;:&quot;full&quot;,&quot;background_image_opacity&quot;:&quot;100&quot;,&quot;border_thickness&quot;:&quot;1px&quot;}" ><div
			
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<p dir="ltr">In a significant development, the Court of Appeal in Kenya has granted a temporary stay on a High Court ruling that had declared certain sections of the Kenya Roads Act and Kenya Roads Board Act unconstitutional. This decision, announced on July 25, 2025, provides temporary relief to the National Assembly and national road agencies, allowing the continued disbursement of billions of shillings from the Road Maintenance Levy Fund (RMLF) for critical road maintenance projects across the country.</p>
<p dir="ltr">The controversy began when the Council of Governors (CoG) challenged the National Assembly’s decision to exclude counties from directly accessing funds managed by the Kenya Roads Board (KRB). The RMLF, collected through a fuel levy, generates up to Sh100 billion annually, with specific allocations designated for road development and maintenance. According to legal mandates, at least 22 percent of the fund supports constituency road projects, while 10 percent is allocated to the Kenya Rural Roads Authority (KeRRA) for maintaining link roads within constituencies.</p>
<p dir="ltr">In August 2024, the National Assembly’s decision to limit counties’ direct access to these funds sparked a legal battle. The CoG argued that this move was unconstitutional, as it undermined devolution by restricting counties’ ability to manage road maintenance funds. The High Court, presided over by Justice Lawrence Mugambi, sided with the governors, issuing a ruling that froze Sh6.8 billion of the Sh10.5 billion earmarked for counties in the 2024/25 financial year. This decision halted disbursements to the Kenya Urban Roads Authority (KURA) and KeRRA, stalling numerous road projects nationwide.</p>
<p dir="ltr">The National Assembly and national road agencies appealed the High Court’s ruling, seeking to restore access to the frozen funds. On July 25, 2025, the Court of Appeal issued a stay order, effectively suspending the High Court’s decision pending a full hearing of the appeal. This ruling ensures that the Kenya Roads Board can continue disbursing funds to support ongoing road maintenance and development projects, providing a lifeline to stalled initiatives.</p>
<p dir="ltr">The Court of Appeal’s decision has been welcomed by Members of Parliament (MPs), who have been vocal about their concerns over the governors’ legal challenge. MPs, including Ainabkoi’s Samuel Chepkonga and National Assembly Majority Leader Kimani Ichung’wah, have argued that counties’ control over the RMLF could lead to mismanagement. They have emphasized the importance of the fund in maintaining critical infrastructure, particularly as the country approaches the rainy season, when poor road conditions could severely impact access to markets and essential services.</p>
<p dir="ltr">The dispute over the RMLF has highlighted deeper tensions between the National Assembly and county governments regarding the control of devolved funds. MPs have taken a firm stance, vowing not to pass the County Governments Additional Allocations Bill, 2025, unless the CoG withdraws its legal challenge. This bill, which includes provisions for allocating Sh50.5 billion to counties, has been stalled due to disagreements over the RMLF and other funding issues. The National Assembly has proposed allocating Sh25.3 billion, while the Senate and governors advocate for the full amount.</p>
<p dir="ltr">Efforts to resolve the standoff have included mediation attempts, with a committee co-chaired by Kiharu MP Ndindi Nyoro and Mandera Senator Ali Roba working to find a compromise. However, progress has been slow, with some MPs, like Soy’s David Kiplagat, arguing that mediation should not proceed while the matter remains sub judice. Senators, on the other hand, have pushed for discussions to continue on other aspects of the bill, temporarily shelving the RMLF issue to avoid further delays.</p>
<p dir="ltr">In April 2025, governors expressed willingness to settle the dispute out of court, with Kakamega Governor Fernandes Barasa and Homa Bay Governor Gladys Wanga advocating for dialogue to expedite the release of funds. They emphasized that delays in accessing the RMLF have stalled critical road projects managed by KeRRA, adversely affecting county development.</p>
<p dir="ltr">The ongoing battle over the RMLF underscores broader challenges facing Kenya’s devolved system of governance, established under the 2010 Constitution. Devolution was designed to decentralize power and promote equitable resource distribution, but disputes like this highlight issues of coordination and resource allocation between national and county governments. Constitutional law expert Evans Ogada has noted that varying capacities among counties, coupled with concerns over corruption and mismanagement, have undermined public trust in devolution. The duplication of roles between MPs and senators, as highlighted in a 2019 study by scholars Samuel Ngigi and Doreen Nekesa Busolo, further complicates effective governance.</p>
<p dir="ltr">The National Treasury’s recent moves to address funding challenges, such as securitizing 50 percent of the RMLF to raise capital for stalled projects, reflect the government’s efforts to balance fiscal constraints with development needs. Treasury Principal Secretary Chris Kiptoo, speaking before the National Assembly’s Public Debt and Privatisation Committee in June 2025, outlined plans to use future revenue streams from the RMLF to secure upfront capital, reducing the government’s debt burden while supporting infrastructure development.</p>
<p dir="ltr">The Court of Appeal’s stay order provides temporary relief, but the underlying dispute remains unresolved. The full hearing of the appeal will determine whether the High Court’s ruling on the unconstitutionality of certain provisions in the Kenya Roads Act and Kenya Roads Board Act will be upheld or overturned. Until then, the National Assembly and road agencies can continue disbursing funds, ensuring that critical road maintenance projects move forward.</p>
<p dir="ltr">However, the standoff between MPs and governors highlights the need for clearer frameworks to govern resource allocation in Kenya’s devolved system. As the country navigates these challenges, stakeholders on both sides are under pressure to prioritize the public’s interest, ensuring that funds like the RMLF are used effectively to improve infrastructure and support economic growth. The resolution of this dispute will likely set a precedent for future interactions between national and county governments, shaping the trajectory of devolution in Kenya.</p>
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