The Kenyan government has completed the payment of verified road-construction bills pending up to December 2025 through securitization.
This follows President William Ruto’s pledge to resolve the long-standing arrears that have weighed down the construction sector.
Delayed payments to contractors have contributed to stalled road projects, job losses, and rising construction costs.
This forced many firms to slow down work, retrench their staff, and rely on expensive short-term borrowing to continue with the projects.
Pending Bills Settled Through Securitization
According to the Ministry of Roads and Transport, the payments were made possible through the securitization of the Road Maintenance Levy, a financing approach that allowed the government to access funds upfront against future levy collections.
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Speaking after the settlement, Daniel Wamahiu, a local contractor, confirmed that the ministry had paid outstanding payments owed to his firm.
 “We have received the pending bills that were owed to us by the Ministry of Roads. This has significantly eased the financial pressure contractors have been facing,” said Wamahiu.
According to Wamahiu, the delay had strained cash flows across the sector, making it difficult for contractors to meet basic obligations such as paying workers, servicing loans, and maintaining equipment.
 “Even when work is ongoing, contractors still have to pay salaries, fuel, machinery, and repay banks. When payments are delayed for long periods, projects stall not because of a lack of capacity, but because working capital runs out,” added Wamahiu.
Boost to Infrastructure and Jobs Recovery
The settlement of pending bills is expected to have an immediate impact on the construction sector as the stalled projects are set to resume.
Contractors can now embark on work, retain their retrenched workers, and plan projects more effectively.
Clearing the arrears is crucial in restoring confidence among banks, suppliers, and investors.
“Once pending bills are settled, contractors can return to sites and plan better. It also improves confidence from banks and suppliers,” added Wamahiu.
President Ruto, speaking in State House during the issuance of United Democratic Alliance (UDA) nomination forms last week, emphasized that clearing these arrears is critical for completing the 6,000 kilometers of roads and an additional 28,000 kilometers of roads.
“We want to complete the 6,000 kilometers of roads we contracted by next year, and then we will work on another 28,000 kilometers. Many people will tell me that they want roads. We go everywhere, and citizens say roads are impassable; we have dusty roads, we have muddy roads. So we need the first 28,000 kilometers,” stated Ruto.
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Government To Pay Bills on Time
While the bill settlement offers relief, experts caution that it alone will not prevent future disruptions.
Stricter project planning, timely disbursement of funds, and stronger contract management will be essential to avoid the accumulation of new pending bills.
The Kenyan government should maintain discipline by paying bills on the.
This will also enable the projects to be completed on time without straining one side due to the loans used by contractors to finance the construction.
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