The government still owes road contractors Sh98.17 billion in unpaid bills, Roads and Transport Cabinet Secretary Davis Chirchir has told MPs, even after more than Sh200 billion was raised against the fuel levy to keep projects moving.

Chirchir made the disclosure on Thursday, October 29, at a consultative meeting in Naivasha with the National Assembly's Departmental Committee on Transport and Infrastructure. The session reviewed road financing, budget absorption and progress on ongoing works across the country.

"As of June 2026, gross pending contractor bills stood at Ksh98.17 billion," the ministry said in its submission to the committee.

How the securitisation money was spent

The CS said the State Department for Roads has so far released Sh208.6 billion through a securitisation framework, under which part of the Road Maintenance Levy Fund (RMLF) is used to raise money upfront. The cash was released in three phases:

  • Sh61.7 billion in the 2024/25 financial year
  • Sh115.8 billion in 2025/26
  • Sh31 billion in the first quarter of 2026/27

Chirchir said the arrangement was designed to reduce reliance on direct Exchequer funding while allowing construction to continue and overdue contractors to be paid. Among the projects that have received funding are the expansion of the James Gichuru-Rironi road and improvements on the Garissa-Isiolo corridor.

He told MPs the RMLF, which is financed through a charge on every litre of fuel, collected Sh127.4 billion in 2025/26, and that the department absorbed 99.8 per cent of its development budget in the same year.

Debt down, but still heavy

While still large, the pending bill has come down. Business Daily earlier reported that the roads department's arrears fell by about 23.5 per cent in the year to June, from a peak of Sh166.76 billion in 2023/24. Unpaid bills had left hundreds of road projects stalled, prompting the government to turn to securitisation in 2025.

Chirchir told the committee that settling the remaining arrears would be handled alongside new and ongoing projects.

New projects on the way

The disclosure comes as the government lines up more road works ahead of the 2027 General Election. Deputy President Kithure Kindiki said this week that construction of the 60km Nairobi-Thika Expressway will begin within one to two months, and on Wednesday he flagged off the Kimbo-Matangi road in Kiambu County.

The State is also preparing a proposed Sh77.8 billion World Bank-supported programme to upgrade 536km of rural roads in seven counties.

Contractors have long warned that new tenders should not come at the expense of firms that have waited years for payment, and the size of the outstanding bill is likely to remain a concern for MPs as the 2027/28 budget is prepared.

Photos: KeNHA via Kenyans.co.ke (road works); Ministry of Transport via Kenyans.co.ke (Davis Chirchir). Thumbnail design: HAMASTA MEDIA.