NAIROBI — The government will clear KSh175 billion in road construction debts by the first week of August, Roads and Transport Cabinet Secretary Davis Chirchir has confirmed.
Addressing the Senate and issuing a public statement this week, Cabinet Secretary Chirchir defended the decision to securitize part of the Road Maintenance Levy, describing it as a lawful, transparent approach aimed at resolving a backlog that stalled more than 580 infrastructure projects nationwide.
“We inherited over KSh175 billion in pending road bills from the previous administration,” CS Chirchir said. “This plan ensures that contractors are paid and that roadworks resume, without adding to the national debt.”
The Cabinet Secretary explained that the Kenya Roads Board (KRB) executed the plan through the creation of a Special Purpose Vehicle (SPV). This SPV will receive a portion KSh7 out of the KSh25 per liter Road Maintenance Levy and raise funds upfront to settle verified debts. “This is not a loan or new borrowing,” Chirchir clarified. “The SPV raises funds using future receivables from the levy. The Kenya Roads Board has no obligation beyond the sale of these rights.”
According to government records, 60 percent of the debt has already been settled. The remaining 40 percent will be paid using the KSh175 billion raised through the SPV, with all payments expected to be completed by early August.
CS Chirchir emphasized that the entire transaction followed full legal procedures, including approval by the National Treasury and the Office of the Attorney General. He assured the public that there was “no secrecy in this process.” “No funds have been misdirected. All statutory requirements were followed to the letter,” he said. “The levy will continue to fund current and future road maintenance projects, with only a clearly defined share dedicated to clearing past obligations.”
The CS added that stalled roadworks have already resumed in the current financial year and affirmed that no new road projects will be initiated until all pending bills are paid.
During his Senate appearance, Chirchir said that compensation for landowners along a 1.5-kilometer stretch of the Ngong–Riruta railway line is underway, with KSh2.8 billion set aside.
Despite constructing the Bomas–Kiserian Road to reduce congestion in Nairobi, CS Chirchir said the railway line remains necessary for cutting emissions in the city.
He also confirmed that the groundbreaking for the Nairobi–Nakuru–Mau Summit Highway dual carriageway will begin by the end of August. The 175-kilometer upgrade is expected to ease traffic and improve regional trade routes.
This latest move signals the government’s intention to rebuild credibility in the road sector and restore momentum in infrastructure delivery, which had slowed under the weight of unpaid obligations.
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