The Kenya Roads Board (KRB) has announced an ambitious plan to float Ksh350 billion bond in 2020 to fund roads development, maintenance, and rehabilitation.
Through the Kenya Roads Board Amendment Act 2019, Parliament says, “With the approval of the cabinet secretary for finance, the board may borrow the monies where it is necessary for the road development and rehabilitation.”
KRB is counting on fuel import levies to back the infrastructure bonds.
Bloomberg reports that Jacob Ruwa, KRB’s Executive Director, expects the bond to be floated in tranches. In addition, Ruwa expects the first Ksh150 billion in March 2020 following approval from the National Assembly.
Furthermore, KRB plans to allocate some of the funds to settling Ksh80 billion in bills owed to contractors.