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nt more or less of particular road services?), and

Expenditures are not subjected to the vigorous tests of the market place (how much road spending can the economy afford?)

Because road users do not pay for roads directly, they are not forced to choose whether and how to make a journey.

1.2 Inadequate Financing Arrangements
The KRB's Road Fund (which includes RMLF) is not sufficient for maintenance of the entire road network. Ministry of Transport estimates for the year 2006/2007 for instance show that backlog maintenance alone requires approximately 21.4 billion Kshs. per year, over the next seven years. Periodic and routine maintenance require an additional 15 billion Kshs. per year, while urgently needed network expansion and capacity enhancement is estimated to require 15 billion Kshs. per year.

An improved road network would therefore require approximately Kshs. 51.4 billion per year, which translates to 4% of GDP (which is recommended by World Bank). At present however, only approximately 20 billion Kshs (about 1.5% of GDP) is allocated for maintenance, rehabilitation and development of the entire road network. For these inadequacies, road rehabilitation and development in Kenya has become too critically dependant on development partner support.

Inadequate funding as detailed above has led to low investment and unsustainable road maintenance policies in the country. Low investment has resulted into high congestion in urban areas, and lack of funds for maintenance has resulted into the decay of the road network. As is expected, the initial impact of this funding crisis has been to increase road transport costs in terms of travel time, Vehicle Operating Cost (VOC), road conservation, pollution and road accidents. The long term impact would be to reduce commercial and agricultural competitiveness in international and regional markets and consequently, to slow down the overall economic growth of the country.

1.3 Too Few and Poorly allocated Funds
Road maintenance in Kenya is under funded mainly because road users do not pay enough for their use of the road network. Like everyone else, the car owners pay import duties and excise and sales taxes which go into the general tax revenue kitty. But the road user charges (fuel levy, international transit fees) which only the motorists pay, rarely goes to cover 25% of expenditures on road maintenance. Much of the road expenditure is therefore still financed from general tax revenues and donor- financed loans and grants.

1.4 Too much New Investment
Road maintenance is also under funded because the government still spends too much on new investment (mainly upgrading existing roads and building feeder roads). Perhaps such new construction is favored because they are politically more visible and glamorous.

In a nutshell, it is evident that the basic problem is one of inadequate and unsustainable funding to support the requisite road infrastructure development in Kenya.

2.0 A MODEL FOR ENSURING AN ADEQUATE AND STABLE FLOW OF FUNDS 保证资金充足稳定流动的模型

In view of the above problems, it is prudent that road network funding frameworks be based on models that can promote economic efficiency and help generate sufficient revenues to operate and maintain the road network on a sustainable long-term basis. To do so, we suggest, a