The government has moved to allay public concerns over its new road financing model, with Roads and Transport Cabinet Secretary Davis Chirchir assuring Kenyans of full transparency in the securitization of a portion of the Road Maintenance Levy.
The CS defended the move as a bold and legally compliant solution to a deepening crisis in the country’s road sector, which has been paralysed by an enormous backlog of unpaid contractor bills amounting to KSh 175 billion.
This financial strain, inherited from the previous administration, has left more than 580 road projects suspended, severely affecting infrastructure development and livelihoods across the country.
In his statement, Chirchir emphasized that the securitization plan, which is being executed through the Kenya Roads Board, does not constitute new public debt. Instead, it involves the sale of future rights to a portion of the levy, specifically KSh 7 out of the current KSh 25 per litre charged to a Special Purpose Vehicle (SPV).
The SPV is tasked with raising upfront funds by leveraging these future collections, which will be used to immediately settle verified pending bills.
He clarified that once the rights are transferred, the Kenya Roads Board holds no further liability or financial obligation, thus shielding the public purse from additional risk.
According to the CS, the model was chosen after evaluating multiple options to unlock stalled infrastructure projects without overburdening the national budget.
He stated that the decision followed all legal protocols, with approvals and oversight from both the National Treasury and the Office of the Attorney General. Chirchir reiterated that all statutory processes were followed, and dismissed claims of secrecy surrounding the financing mechanism.
The government maintains that this approach will not only clear the backlog but also restore confidence among contractors and spur economic activity in regions previously affected by halted roadworks.
Chirchir noted that the Road Maintenance Levy will continue to fund future infrastructure projects, with only a clearly defined portion earmarked for settling past obligations.
As Kenya seeks to accelerate its development agenda, the government has pledged to uphold transparency and accountability in all aspects of public finance, especially in matters involving strategic infrastructure.
Written By Ian Maleve
