State Department for Roads Disburses KSh. 208.6 Billion Through Securitisation Framework

The State Department for Roads has disbursed KSh. 208.6 billion through a securitisation framework to support road infrastructure development and settle outstanding contractor payments, Cabinet Secretary for Roads and Transport Hon. Davis Chirchir has announced.

The CS made the announcement today in Naivasha, during a consultative retreat with the National Assembly Departmental Committee on Transport and Infrastructure, chaired by Hon. George Kariuki. 

The engagement focused on infrastructure financing, Road Maintenance Levy Fund (RMLF) collections and disbursements, pending bills, budget utilisation and the implementation of road projects across the country.

The disbursements comprised KSh. 61.7 billion in the 2024/25 financial year, KSh. 115.8 billion in 2025/26, and a further KSh. 31 billion in the first quarter of 2026/27. The alternative financing mechanism is designed to ease pressure on Exchequer funding, sustain ongoing road projects and accelerate the settlement of outstanding contractor obligations.

As of June 2026, gross pending contractor bills stood at KSh. 98.17 billion, with the State Department prioritising their settlement alongside the continued implementation of road development projects.

The securitisation proceeds have supported major infrastructure projects, including capacity enhancement along the James Gichuru–Rironi Road and improvements to the Garissa–Isiolo corridor, contributing to enhanced connectivity and mobility.

Meanwhile, Road Maintenance Levy Fund collections reached KSh. 127.4 billion in the 2025/26 financial year, while development Exchequer absorption stood at 99.8 per cent.

Following recent budgetary adjustments, implementing agencies are optimising resource allocation to maintain momentum on ongoing projects.

The engagement underscored the importance of transparency, accountability, prudent financial management and collaboration between the Executive and Parliament in addressing financing challenges, settling pending bills and accelerating road infrastructure delivery.

The Principal Secretary for Roads, Eng. Joseph Mbugua, accompanied the CS during the retreat, alongside Directors-General from the Kenya National Highways Authority (KeNHA), Kenya Urban Roads Authority (KURA) and Kenya Rural Roads Authority (KeRRA).

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