The Cabinet Secretary for Transport and Infrastructure, Mr. Davis Chirchir, has confirmed that KShs. 7.00 from the Road Maintenance Levy Fund (RMLF) was allocated to a Special Purpose Vehicle (SPV) in February 2025 as part of a financing arrangement to secure a KShs. 175 billion long-term infrastructure bond facility from the Trade and Development Bank (TDB).
Appearing before the National Assembly’s Budget and Appropriations Committee, Mr. Chirchir explained that the funds were intended to settle pending bills and other obligations at the State Department for Roads.
He emphasised that the Government of Kenya did not issue any sovereign guarantee for the transaction, clarifying that the deal does not affect the country’s public debt ceiling or fiscal sustainability.
“No guarantee has been issued by the Government of Kenya for this transaction.
The risks rest with the purchaser of the receivables, that is, the SPV. The transaction does not sit in the books of the government, but in a bankruptcy-remote SPV. Therefore, it has no implication on public debt ceilings and fiscal sustainability,” CS Chirchir said.
The session, chaired by Hon. Samuel Atandi, also focused on the management and allocation of the RMLF.
On the County Governments Additional Allocation Bill 2025, CS Chirchir noted that the proposed KShs. 13.115 billion conditional grant exceeds projected allocations, which should be KShs. 12.353 billion based on historical 15 percent RMLF allocations to counties.
He urged Parliament to fast-track the Kenya Roads Amendment Bill 2025, describing it as critical for clarifying road classifications, delineating responsibilities between national and county governments, and guiding resource allocation.
The Budget and Appropriations Committee is finalizing reports on the FY 2024/25 budget implementation and two Senate bills, the County Governments Additional Allocation Bill 2025 and the Equalization Appropriation Bill 2025, set to be tabled once the National Assembly resumes from recess.
