Road construction and maintenance across Nyeri County have sprung back to life after years of stagnation caused by mounting contractor arrears.
The revival follows the government’s bold adoption of securitization of the Road Maintenance Levy Fund (RMLF), which has unlocked billions to clear pending bills and restart stalled projects.
Along the busy Kenol–Sagana–Marua corridor, roadworks are once again in full swing. In Karatina town, where construction had stalled for months over land compensation disputes, visible progress is now being made.
The National Land Commission has already disbursed Ksh 3.2 billion out of the Ksh 4.2 billion owed, clearing the way for the resumption of long-delayed works.
Securitization Unlocks Billions for Nyeri Road Works
In Nyeri, the impact is evident. Heavy machinery is back on site along the Nyeri–Othaya–Kangema (B23) road, where periodic maintenance, drainage upgrades, and re-carpeting are underway.
This key corridor, linking Nyeri town through Othaya to Kangema, is vital for farmers transporting tea, coffee, milk, and horticultural produce to major markets.
Urban centres are also benefiting. In Karatina, resurfaced roads and improved stages are restoring smoother access for traders and matatus, cutting travel times and reducing vehicle wear.
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Across rural areas such as Kieni, Mathira, and Tetu, the Kenya Rural Roads Authority (KeRRA) is carrying out spot improvements and routine maintenance to ensure villages remain connected to schools, health facilities, and local markets.
The three main agencies, the Kenya National Highways Authority (KeNHA), the Kenya Urban Roads Authority (KURA), and KeRRA are working in their respective jurisdictions with support from securitized funds.
Contractors who had abandoned sites over delayed payments have now returned, injecting new momentum into long-stalled projects.
Stakeholders say the decision to securitize has brought direct human and economic benefits. For contractors, cleared arrears mean business continuity and jobs saved.
For residents, it means safer, smoother, and more reliable roads that underpin trade, mobility, and regional development.
“By unlocking funds through securitization, the government has injected new life into Nyeri’s infrastructure. This is not just about tarmac; it’s about reviving livelihoods,” a senior roads engineer in Nyeri observed.
Beyond Nyeri, the impact of securitization is being felt nationwide. More than 580 stalled projects across the country have resumed, from highways and urban access roads to rural feeder networks.
In counties such as Meru, Kisii, Kakamega, and Nakuru, contractors are back on site, machinery is rolling, and communities are reconnecting to markets and services.
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Here’s How Securitization Works
Under this initiative, the government, through the Kenya Roads Board (KRB), securitized part of the Ksh 25 per litre fuel levy, raising Ksh 175 billion from investors.
Every litre of fuel is taxed at KSh 25 for road maintenance. The government has taken Ksh 7 out of the Ksh 25, packaged it into a financial product, and sold it to investors, who will be repaid over the next seven years.
This transaction has generated an upfront cash amounting to Ksh 175 billion. The money is now being used to clear unpaid dues owed to contractors, a move expected to restart more than 580 stalled road projects.
“Out of the KSh 175 billion, part of it is for road works, part of it is for interest on delayed payments, and part of it is for land compensation to create avenues to put up those roads,” Kenya Urban Roads Authority (KURA) Director General Silas Kinoti stated.
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