The road transport-related tax revenue in Kenya showed a fluctuating trend from 2013 to 2023. In 2023, the revenue stood at 64.11 units of environmental tax. Year-on-year variation peaked in 2014 with a 14.61% increase and saw a significant decline in 2019 with a decrease of 6.35%. More recent years suggest stabilization, with an average annual growth rate (CAGR) of 0.7% from 2019 to 2023. Looking forward from 2024 to 2028, the tax revenue is forecasted to grow at a CAGR of 1.21%, projecting a total growth of 6.18% by 2028.
Future trends to watch for include:
- Policy changes affecting road transport taxation.
- Inflation impact on tax revenue projections.
- Shifts towards electric and hybrid vehicles potentially altering tax revenues.
- Economic growth influencing the overall vehicle market and road usage.
