The government has secured Sh139 billion to settle certified outstanding payments owed to road contractors as it moves to restart stalled projects and speed up ongoing road construction.
Roads and Transport Cabinet Secretary Davis Chirchir said payments for eligible works completed during the last quarter will start on August 21 and are expected to be completed by August 28.
The funding is expected to ease pressure on contractors who have struggled with delayed payments, which have disrupted several projects and strained the finances of construction companies.
Speaking during a meeting with road contractors, engineers and technical officials from the State Department for Roads and its implementing agencies, Chirchir said the government had received the first tranche of the latest financing arrangement and was awaiting the next disbursement.
He said the securitisation framework was necessary because regular Exchequer allocations were insufficient to finance ongoing road projects while also settling accumulated arrears.
“We are not simply clearing yesterday’s pending bills. Our objective is to stop creating tomorrow’s pending bills,” Chirchir said.
The latest funding follows an earlier arrangement in which the government securitised Sh7 per litre of the Road Maintenance Levy Fund to raise Sh175 billion.
That financing enabled the State to settle outstanding bills for certified works and eligible interest obligations accumulated up to March 2026, allowing contractors whose projects had slowed to resume construction.
About 560 contractors owed Sh50 million or less were paid early last year, while the government continued clearing other outstanding obligations through December.
Chirchir said the latest payments would follow an established system based on claims that have been properly measured, verified and certified.
He urged contractors to remain on site and speed up work while complying with contractual requirements on cost, timelines and quality.
The CS also warned against attempts to influence the payment process through intermediaries, insisting that contractors would be paid according to the approved framework.
“There should be no middlemen and no preferential treatment. If a certificate is properly certified and eligible, it should be processed in accordance with the approved payment framework,” he said.
The government is simultaneously strengthening controls over the certification of road works to ensure the additional funding delivers value for money.
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Chirchir directed engineers and technical officers to take greater responsibility for project quality, costs and scope, cautioning them against approving work they cannot professionally justify.
He also ordered road agencies to improve project preparation before procurement by strengthening designs, conducting proper site investigations and verifying quantities.
Issues such as exhausted contract quantities, premature road deterioration and questionable certification should, he said, be identified and addressed before construction starts. Professionals found responsible for shortcomings will face accountability.
The move to clear contractors’ arrears comes amid a persistent financing shortfall in the roads sector, which has contributed to project delays and increased financial pressure on construction firms.
Chirchir said the government’s role was to secure resources and provide predictable financing, while contractors must deliver projects and engineers ensure quality, accountability and value for money.
