The government owes road contractors KSh98.17 billion in pending bills, raising questions about how it will clear the debt while continuing to fund road construction and expansion projects across the country.
Roads and Transport Cabinet Secretary Davis Chirchir disclosed the figure during a meeting with the National Assembly’s Departmental Committee on Transport and Infrastructure in Naivasha on Thursday, October 29.
The debt covers outstanding payments as of June 2026. Chirchir told the committee that settling the bills remained a priority, even as the ministry continued implementing ongoing road projects.
He also revealed that the Roads Department had released KSh208.6 billion through a securitisation arrangement to support road development and pay contractors.
The money was disbursed in three phases. The ministry released KSh61.7 billion in the 2024/25 financial year, followed by KSh115.8 billion in 2025/26. A further KSh31 billion was released in the first quarter of the current 2026/27 financial year.
Some of the funds have gone towards major road works, including the expansion of the James Gichuru-Rironi Road and improvements to the Garissa-Isiolo corridor.
Chirchir said the financing arrangement was intended to reduce dependence on money from the National Treasury while allowing construction work to continue and outstanding contractor payments to be addressed.
The CS further told the committee that the Road Maintenance Levy Fund collected KSh127.4 billion in the 2025/26 financial year. He also reported that the development budget absorption rate stood at 99.8 per cent.
The disclosure comes as the government pushes ahead with several road projects, including proposed upgrades and new expressways.
Among the plans is the Nairobi-Thika Expressway, which Deputy President Kithure Kindiki recently said was expected to break ground within one to two months.
The government has also outlined a KSh77.8 billion plan, backed by the World Bank, to upgrade 536 kilometres of rural roads across seven counties.
