DisputeCourt Orders Ksh10.5 Billion Road Maintenance Levy to Be Given to Counties
In a major legal milestone that strengthens the spirit of devolution, the High Court of Kenya has ruled that county governments must be included as beneficiaries of the Road Maintenance Levy Fund (RMLF)—a fund commonly known as the fuel levy.
The decision was delivered on Thursday, June 5, 2025, by Justice Lawrence Mugambi, who declared that previous decisions made by the National Assembly excluding counties from this crucial infrastructure fund were unconstitutional and illegal.
Justice Mugambi specifically nullified two parliamentary decisions—one from September 28, 2023, and another from August 13, 2024—which had removed county governments from the list of beneficiaries of the fuel levy during the 2024/2025 and 2025/2026 financial years.
The judge also voided the exclusion of over Ksh10 billion in conditional grants that were intended for counties in the 2024/2025 budget.
In making his ruling, the judge stated that Parliament’s decisions violated Article 186(1) of the Constitution and Section 18 of the Fourth Schedule, which outlines the distribution of functions and resources between the national and county governments.
Justice Mugambi also found Section 6 of the Kenya Roads Board Act, 1999, unconstitutional for contradicting Articles 6, 10, and 186, along with the Fourth Schedule.
According to the judge, excluding counties from the fuel levy disregards the Constitution’s commitment to devolution and fair distribution of resources.
“Any appropriation of funds from the Road Maintenance Levy Fund (RMLF) that leaves out counties is unconstitutional, illegal, and goes against the core principles of devolution,” Justice Mugambi ruled.
As a result of this landmark ruling, the Kenya Roads Board (KRB) is now legally required to release Ksh10.5 billion (Ksh10,522,211,853) to county governments by June 30, 2025.
This development is expected to significantly boost road development and maintenance at the county level, especially in rural areas that often receive limited attention from national projects.
The ruling marks the end of a prolonged dispute between county governments and the national government, which had been at odds for months over who should manage and benefit from the fund.
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The court’s decision was met with widespread celebration among leaders, especially senators, who praised it as a victory for devolution and constitutional order.
Kiambu Senator Karung’o wa Thang’wa applauded the judgment on social media, saying:
“Justice Mugambi has slain the ghost of parliamentary supremacy! He has overturned the MPs’ illegal attempt to deny counties their rightful share. Ksh10.5B must now be sent to counties before June 30, 2025!”
Narok Senator Ledama Olekina echoed this enthusiasm, calling the ruling a major step forward:
“A big win for County Governments and devolution on RMLF. Sorry, National Assembly… slowly but surely, CDF will soon follow the same path.”
Political parties also responded, with the Orange Democratic Movement (ODM) celebrating the outcome as a win for all Kenyans. In a public statement, ODM described the judgment as a “victory for devolution, equity, and transparency in governance.”
“As a party, we fully support the High Court’s decision. We will always fight to protect the rights of counties and ensure they receive their fair share of national resources,” the ODM statement read.
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This landmark ruling reinforces the constitutional principle that counties must play a significant role in resource management, especially in essential sectors like infrastructure and roads, which directly affect citizens’ daily lives.
It also sets a precedent for future financial disputes between county and national governments, reinforcing the need for cooperation and respect for devolution.
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