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Road transport earnings hit Sh702 billion in latest economic survey

The output from road transport was Sh702.1 billion in 2017, the Economic Survey report indicates. The 2017 report that was launched on Wednesday states that earnings increased by 5.7 percent from Sh664.5 billion in 2016. This was the equivalent of 62.9 percent of all the earnings by the transport sector.

Passenger traffic accounted for Sh349,941 billion, an improvement of five percent, while freight traffic accounted for Sh352,186 billion, an improvement of 6.3 percent. The findings came amid public outcry about corruption in the public transport sector. The EACC’s 2016 Corruption Index ranked the police service and the traffic department as the most corrupt.

Read: Police Service and Traffic the most corrupt- EACC survey[1] CARGO SHARES The survey report further indicated that the government initiated a number of projects and programmes in road, rail, air, maritime and non-motorised transport, the goal being improving them.

Overall, the output of the transport and storage sector expanded by 8.8 percent to Sh1,115.7 billion in 2017. Total cargo throughput handled at the Mombasa Port increased by 10.6 percent, from 27.4 million tonnes in 2016 to 30.3 million tonnes in 2017. Imports accounted for 84.6 percent, a 10.8 percent improvement to 25.6 million tonnes.

The export share expanded by 2.7 percent to 3.8 million tonnes in 2017. The output from the air transport sub-sector increased by 14.9 percent to Sh183.1 billion while that of services incidental to transport increased by 28.3 percent to Sh 107.8 billion in the review period. In the rail sub-sector, a decline of 8.8 percent was recorded, from Sh5.7 billion in 2016 to Sh 5.2 billion in 2017.

The government asked shippers to collect their cargo at the Embakasi Internal Container Depot saying some 1,700 containers were lying at the depot. Kenya Ports Authority MD Catherine Muturi said the containers had been cleared but owners are yet to collect them. She said the deport initially had capacity for 180,000 containers but was redesigned to handle 450,000 20-foot units which she said will hold 70 percent of imports at the port.

Read: Shippers asked to collect 1,700 containers at Embakasi ICD[2] Also Read: Cargo owners will dig deeper into pockets to vacate goods[3] TRAVEL

The report stated that the number of domestic passengers traveling by air declined by 0.7 percent to 3,991,200 while that of international passengers increased by 6.0 percent to 6,121,300. Disbursement of funds from the Kenya Roads Board to agencies for maintenance of roads is projected to increase by five percent – from Sh 60.5 billion in 2016/17 to Sh63.5 billion in 2017/18 – mainly on account of the fuel levy. Collections from fuel levy, the survey found, are expected to increase by five percent from Sh60.0 billion in 2016/17 to Sh63.0 billion in 2017/18 while those from transit toll should reach Sh474 million in 2017/18.

The increase in the fuel levy rate – from Sh12 per litre in June 2015 to Sh18 per litre in 2016 – partly explained increased collections from Sh31.8 billion in 2015/16 to Sh60.0 billion in 2016/17. The 2017/18 budget estimates indicated that Treasury would spend Sh231.9 billion on development of physical infrastructure. The budget for roads had been slashed by Sh12 billion or 8.13 percent to Sh134.6 billion from Sh147.6 billion.

This comprised Sh63.6 billion for ongoing road projects, a marginal 1.27 percent rise from Sh62.8 billion previously. The budget for foreign financed roads has, however, been trimmed by 19.16 percent to Sh44.3 billion from Sh54.8 billion. More on this: Infrastructure budget slashed as SGR enters final stretch[4]

Click here for the latest political news[5]

References

  1. ^ Police Service and Traffic the most corrupt- EACC survey (www.the-star.co.ke)
  2. ^ Shippers asked to collect 1,700 containers at Embakasi ICD (www.the-star.co.ke)
  3. ^ Cargo owners will dig deeper into pockets to vacate goods (www.the-star.co.ke)
  4. ^ Infrastructure budget slashed as SGR enters final stretch (www.the-star.co.ke)
  5. ^ Click here for the latest political news (www.the-star.co.ke)



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