The CS disclosed details of a financing arrangement aimed at easing pressure on public funds and addressing outstanding payments owed to contractors.
Transport Cabinet Secretary Davis Chirchir during the signing of the first phase of the Nairobi Transport Intelligence System on Wednesday, November 27, 2024, in Nairobi. Ministry of Transport The Ministry of Roads and Transport has disclosed that it owes road contractors Ksh98.17 billion in gross pending bills as of June, even as it continues to finance ongoing infrastructure projects across the country.
Roads and Transport Cabinet Secretary Davis Chirchir revealed the debt during a consultative meeting with the National Assembly’s Departmental Committee on Transport and Infrastructure in Naivasha on Thursday, October 29, where he discussed financing, budget utilisation and the progress of ongoing projects.
He said clearing the outstanding payments was a priority alongside the execution of new and ongoing road projects.
“As of June 2026, gross pending contractor bills stood at Ksh98.17 billion, with the State Department prioritising their settlement alongside the continued implementation of road development projects,” read a statement after the meeting.
Construction workers at the Wikililye–Katulani Road site in Kitui during a KeNHA inspection, September 25, 2026. Photo KeNHA In addition, the CS said the Roads Department had disbursed Ksh208.6 billion through a securitisation framework aimed at financing road development and clearing the outstanding obligations to contractors.
Some of the securitisation funds have gone towards major infrastructure works, including the expansion of the James Gichuru–Rironi Road and improvements to the Garissa-Isiolo corridor.
He explained that the amount was released in three phases, with Ksh61.7 billion issued in the 2024/25 financial year, Ksh115.8 billion in 2025/26 and another Ksh31 billion during the first quarter of 2026/27.
According to Chirchir, the alternative financing arrangement is intended to reduce reliance on Exchequer funding while ensuring that ongoing construction works continue and contractors receive outstanding payments.
He also reported that the Road Maintenance Levy Fund collected Ksh127.4 billion during the 2025/26 financial year, while development budget absorption reached 99.8 per cent.
The disclosure comes as the government continues to roll out road construction, rehabilitation and expansion projects across the country as part of President William Ruto’s push for infrastructure development.
Deputy President Kithure Kindiki recently announced that the proposed Nairobi-Thika Expressway would break ground within the next one to two months.
The government has also outlined plans to upgrade 536 kilometres of rural roads across seven counties under a proposed Ksh77.8 billion project supported by the World Bank.
