Roads and Transport Ministry has announced that Sh76 billion has been released to contractors to clear pending bills, unlocking key stalled road projects across the country.
Cabinet Secretary Davis Chirchir told the Budget and Appropriations Committee that the funds were raised through the securitisation of the Road Maintenance Levy Fund, with the Eastern and Southern African Trade & Development Bank acting as lead arranger.
“The securitisation programme has proved to be a game changer in the State Department for Roads. Road works that had stalled have resumed all over the country,” Chirchir said.
Among the projects revived include the Kwa Jomvu Interchange in Mombasa, the Kenol–Marua road, Mbita–Sindo road, and the Segel–Maikona road in Marsabit. The CS noted that at least 80 percent of contractors with pending bills will be paid in the coming weeks.
Chirchir added that the government is pursuing alternative financing options for the sector, including road tolling and mass-distance charges, to reduce over-reliance on the fuel levy.
The road sector is grappling with pending bills amounting to Sh174 billion as of December 2024, with additional funding needs of Sh775 billion for ongoing projects scheduled for completion in the next three years.
