Nairobi — The Cabinet has confirmed that all pending bills for certified works and accrued interest in the Ministry of Roads up to December 31, 2024, have been fully settled.

In a statement issued after a Cabinet meeting, the government said the Ministry of Roads has paid a total of Sh123 billion to clear the outstanding obligations, a move that has restored confidence among contractors and enabled stalled projects to resume nationwide.

The Cabinet observed that the payment programme has led to the acceleration of 875 road contracts since April 2025, significantly improving project momentum across the country.

In November, the government announced it had settled KSh93 billion in road sector pending bills using bank loans, ahead of the issuance of a bond to clear arrears accumulated during the development of the country's transport infrastructure.

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The planned Sh175 billion bond will be secured by the Kenya Roads Board's Road Maintenance Levy Fund, which is funded through the increased fuel levy, ensuring repayments are tied to a predictable revenue stream.

The National Treasury said the state tapped a KSh104 billion loan from a syndicate of commercial banks to settle verified pending bills in the sector, allowing road contractors to resume previously abandoned projects.

The payments have revitalised growth in the building and construction sector, which had slipped into a technical recession after recording two consecutive quarters of contraction up to September last year.