Road Projects Back on Track as Government Channels KSh175 Billion from Fuel Levy to Revive Construction
Kenya’s road construction sector is roaring back to life following a KSh175 billion injection from fuel levy securitisation, a move by the government aimed at unlocking stalled infrastructure projects.
The Ministry of Roads and Transport has launched a new financial model to ease the strain on infrastructure funding after prolonged delays caused by pending contractor payments. For months, roadworks across the country—especially on estate roads and major highways, had come to a halt, with construction sites abandoned as contractors withdrew due to non-payment.
The fuel levy securitisation programme, backed by President William Ruto’s administration, now provides a much-needed lifeline to the sector. It channels future collections from the Road Maintenance Levy into a financing mechanism that can be used immediately to settle debts and resume projects.
“This is an idea we toyed with for some time until we got support from the highest office in this country for us to move on,” said Kenya Urban Roads Authority (KURA) Director General Silas Kinoti, as quoted by Citizen TV.
The revival effort comes as the current government also revealed the magnitude of unpaid bills it inherited from the previous Jubilee administration. These obligations had placed immense pressure on contractors and hindered ongoing development across counties.
With construction equipment back on sites and workers returning, the road sector is expected to see renewed momentum over the coming months. The Ministry is optimistic that the fuel levy model will offer a long-term solution to Kenya’s infrastructure financing challenges.
The initiative is also seen as a boost to the economy, as roadworks often provide thousands of jobs and improve access across regions, helping ease transportation of goods and people alike.
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