Roads and Transport Cabinet Secretary Davis Chirchir has defended a Ksh175 billion road infrastructure bond amid concerns it could worsen Kenya’s already heavy debt burden.
Appearing before the National Assembly’s Budget and Appropriations Committee on Friday, September 5, Chirchir explained that the bond was being raised through a Special Purpose Vehicle (SPV) and not directly by the government.
According to Chirchir, the facility from the Trade and Development Bank (TDB) would be repaid using revenue from the Road Maintenance Levy Fund (RMLF), with Ksh7 per litre allocated to the SPV.
“The transaction does not sit in the books of the government but in a bankruptcy-remote SPV. Therefore, it has no implication on public debt ceilings and fiscal sustainability,” the CS clarified.
Kenya’s debt currently stands at over Ksh11 trillion, about 63 percent of GDP, far above the 55 percent threshold.
Chirchir further explained that part of the Ksh175 billion would be used to clear pending bills and finance the long-awaited Nairobi–Nakuru–Mau Summit Highway, a key section of the Northern Corridor.
Construction of the road is set to begin by the end of August 2025 and is expected to take two years, with completion targeted for June 2027. Once complete, the highway is projected to ease traffic congestion along the busy Nairobi–Nakuru route, a critical link to Western Kenya and neighbouring countries.
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