Kenya: Treasury Raises Sh104bn to Pay Road Contractors

5 November 2025
Capital FM (Nairobi)
By Phidel Kizito

Nairobi — The National Treasury has raised Sh104 billion through a bridge facility under the Kenya Roads Bond programme to clear part of the government's pending bills in the roads sector.

Treasury Cabinet Secretary John Mbadi said the funds were raised using the Road Maintenance Levy Fund (RMLF) as collateral, paving the way for stalled infrastructure projects to resume.

"On the Kenya Roads Bond, we started off by going for a bridge facility where we have raised KSh104 billion. This shall be extinguished once the bond issue is finalized," said Mbadi in Nairobi.

He added that Sh93 billion from the amount has already been disbursed to contractors, with the remaining funds expected to be covered by a Sh175 billion bond issue later this month.

The securitization plan allows the government to leverage future fuel levy revenues to provide immediate liquidity to road contractors and reduce the sector's Sh175 billion arrears.

Read the original article on Capital FM.

Tagged:
Copyright © 2025 Capital FM. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 400 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.