Government raises Ksh 139B to clear roads pending bills

The Kenyan government has successfully raised Ksh 139 billion by securitizing the Road Maintenance Levy Fund. This revenue will be utilized to settle outstanding bills owed to road contractors and expedite ongoing road development projects nationwide. The funds will be disbursed starting from the 21st of this month and will be fully allocated by the 28th.

Road and Transport Cabinet Secretary Davis Chirchir announced that this financial strategy was necessary because traditional government allocations were insufficient to cover the expenses of ongoing road works and accumulated debts. Chirchir emphasized that the government's goal extends beyond merely resolving past pending bills; it aims to prevent the creation of future financial obligations.

Through Phase I, the government leveraged Ksh 7 per liter of the Road Maintenance Levy Fund to generate a total of Ksh 175 billion, which was sufficient to settle all certified works and related interest obligations up to March 2026. The first tranche of the current financing program has been received, and the subsequent tranche is expected shortly, which will facilitate payments to contractors from this week.

Contractors are assured that the payment process will adhere to a well-established framework based on accurately measured, verified, and certified claims. Chirchir urged contractors to maintain their presence on the job sites and accelerate project implementation while adhering to established contractual requirements regarding time, cost, and quality.

He stressed that there should be no involvement of middlemen and no preferential treatment. Contractors should only receive payments for work that is properly certified and eligible, as per the approved payment framework. Chirchir further instructed engineers and technical officers to assume full responsibility for the quality, cost, and scope of road projects.

Contractors were directed to certify only work that they could professionally defend. Additionally, road agencies were directed to strengthen project preparation before procurement, particularly focusing on design development, site investigations, and verification of quantities. Chirchir warned that any contract overruns, premature road failures, or unjustified certifications would lead to professional accountability.