President William Ruto has announced the release of Ksh60 billion to contractors, largely Chinese nationals, who had abandoned infrastructure projects due to delayed payments.
Speaking at the Interdenominational Church Service, Kapng’etik, Elgeyo in Marakwet County on Sunday, April 13, the president said the government had finally settled the long-standing arrears.
According to Ruto, the delayed roadworks, which had stalled due to non-payment, will therefore resume.
“The problems we have been having are because of financial struggles here in the country and even globally. For the two years, we have been handling that. “
“And therefore, in the last two weeks, we have paid contractors Ksh60 billion. Most of them had left their roadworks halfway and left. From next week, you will note that they will start going back to work,” announced Ruto.
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Ruto Borrows to Pay Contractors
According to the National Treasury, the Ksh60 billion financing package was obtained from a consortium of banks, led by the Trade and Development Bank.
Moreover, the short-term facility is expected to be repaid through proceeds of the road maintenance levy, a tax collected on fuel to fund road infrastructure.
This could mean that Kenyans will see an increase in fuel prices in the following months.
Further, Treasury Cabinet Secretary John Mbadi explained that the decision came because the government was facing mounting pressure over stalled development projects, rising debt, and concerns about public service delivery.
Under the plan, the road maintenance levy will serve as collateral, allowing the government to tap into future revenue to pay off the loan.
In March, Mbadi noted that contractors and landowners were still owed Ksh175 billion, and that the government planned to issue a medium-term bond by the end of June to raise a similar amount.
“We urgently need to restart stalled road projects across the country,” Treasury Cabinet Secretary John Mbadi said during an interview with Bloomberg.
Also, he noted that the government asked contractors owed billions to waive up to 50% of the accrued interest. According to him, the savings will help fund completed road projects in the current and upcoming financial year.
“We are asking them to take a haircut of 50% on the interest,” Mbadi added.
Also Read: Kenyan Shilling Affected in Global Shakeup as US Dollar Weakens
Ruto Breaks Silence on Echoes of War
On the other hand, the president addressed the controversy surrounding the Butere Girls High School play Echoes of War, which was performed during the National Drama Festival at Melvin Jones Academy in Nakuru on April 10, 2025.
Ruto issued a stern warning to former Kakamega Senator Cleophas Malala, cautioning against attempts to influence learners negatively.
“We must equally protect all our children from pedophiles, drug peddlers, and those who want to corrupt our children and teach them to hate their parents, teachers, leaders, or their nation. We must protect our children from those people,” said Ruto.
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