The Cabinet has approved the release of up to 80% of verified road contractor claims—doubling the previous 40% payout—in a move aimed at unlocking stalled projects, improving contractors’ cash flow, and accelerating nationwide infrastructure development.
The additional funds will come from the securitization of the Road Maintenance Levy Fund (RMLF), a financing strategy that has already disbursed Sh64.2 billion, settling 40% of pending bills across 575 contracts linked to 393 projects.
This decision reinforces a controversial funding model defended by Roads and Transport Cabinet Secretary Davis Chirchir, who maintains that the securitization process is legal, transparent, and fiscally sound.
In a statement on July 16, Chirchir said the government adopted securitization to raise Sh175 billion to clear verified pending bills left by the previous administration, which had led to the stalling of over 580 road projects nationwide. – Capital News
