The government plans to securitise an additional KSh 5 per litre of the Roads Maintenance Levy, a move that will bring the total portion of the levy pledged to investors to KSh 12 per litre.
- •The plan was disclosed this week by Roads and Transport Cabinet Secretary Davis Chirchir during an appearance before the National Assembly’s Transport and Infrastructure Committee.
- •The move underscores the government’s growing dependence on future fuel-levy revenues to plug a KSh 900 billion funding gap in unfinished road projects.
- •Under the revised structure, the government will redirect funds from existing allocations to create fiscal room for the new KSh 5 per litre securitisation.
These efforts will include the halving of the Roads Annuity Fund from KSh 3.0 to KSh 1.5 per litre, while the Emergency and Kenya Roads Board allocations will each forfeit KSh 1.0 and KSh 2.5 per litre respectively.
The securitisation framework allowed the Kenya Roads Board (KRB) to issue infrastructure bonds backed by a portion of the fuel levy, providing upfront cash that is later repaid from future levy collections. The government has already securitised KSh 7 per litre of the levy intended to raise KSh 175 billion for the settlement of contractors’ pending bills.
CS Chirchir told lawmakers that the additional securitisation was necessary given the government’s limited annual allocation of about KSh 55 billion for road development.
According to official disclosures from the ministry, KRB secured a KSh 104 billion bridge facility to restart stalled projects while awaiting the full bond issuance. The facility has cleared roughly 80% of pending bills across the three key road agencies: the Kenya Rural Roads Authority (KeRRA), the Kenya National Highways Authority (KeNHA), and the Kenya Urban Roads Authority (KURA). KeRRA received KSh 51.2 billion, KeNHA KSh 44.2 billion, and KURA KSh 8.7 billion.
Legislators had summoned Chirchir to clarify inconsistencies in KeRRA’s internal figures for constituency allocations, which initially reflected incorrect calculations. The ministry later corrected the figures, citing adjustments made following the new securitisation plan. Each constituency’s allocation stood at KSh 62.4 million but was reduced by 17%.
The ministry also attributed delays in releasing RMLF allocations to a High Court order issued in August 2024, which temporarily blocked the transfer of KSh 10.5 billion pending a legal review of the fund’s disbursement structure. About KSh 3.1 billion remains outstanding to KeRRA and KURA, though Chirchir said the funds have now been cleared for release.
With roughly 75% of pending contracts now settled, the latest move suggests a continued pivot toward debt-financed infrastructure spending amid constrained exchequer support.