NAIROBI, Kenya, July 29 – Road contractors with pending bills will get an extra 40 percent payout after Cabinet approval.
Already, the government has paid them 40 percent through the Road Maintenance Levy Fund (RMLF), leaving a balance of 20 percent.
“To address pending bills, the Cabinet approved further measures to accelerate momentum in the roads sector. This builds on the successful rollout of the road financing policy through the securitisation of the Road Maintenance Levy Fund (RMLF), which has already disbursed KSh64.2 billion, settling 40% of verified contractor claims of 575 contracts covering 393 projects,” the Cabinet said in a statement.
“To deepen this novel model in infrastructure development, the Cabinet approved an additional payment of up to 40%, bringing the total settlement to 80%, on the condition that contractors extend the final payment deadline by another 120 days.These measures have resolved long-standing financial obligations, unlocked stalled projects, improved contractor cash flow, and ensured continuity in infrastructure development nationwide.”
It comes after Roads and Transport Cabinet Secretary Davis Chirchir defended RMLF, insisting that the securitisation of the levy is legal, transparent, and fiscally responsible.
Chirchir explained that the government turned to securitisation to raise Sh175 billion to pay off verified pending bills inherited from the previous administration, which had stalled over 580 road projects across the country.
