President William Ruto announced on Sunday, April 13, that the government has released Ksh60 billion to contractors, primarily Chinese nationals, who had abandoned infrastructure projects due to delayed payments.
Speaking at the Interdenominational Church Service in Kapng’etik, Elgeyo Marakwet County, the president confirmed that the government had settled the long-standing arrears, clearing the way for stalled roadworks to resume.
Ruto explained that the financial challenges, both locally and globally, had delayed the payments, but the issue has now been resolved.
“The problems we’ve had are due to financial struggles in the country and globally. For the past two years, we’ve been addressing that. In the last two weeks, we’ve paid contractors Ksh60 billion. Many of them had left their projects unfinished, but starting next week, you will note that they will return to work,” he said.
The National Treasury shared that the Ksh60 billion was secured through a consortium of banks, with the Trade and Development Bank leading the group. The loan will be repaid using proceeds from the road maintenance levy, a fuel tax designed to fund road infrastructure. This could lead to a rise in fuel prices for Kenyans in the coming months.
Treasury Cabinet Secretary John Mbadi explained that the decision was driven by mounting pressure from stalled projects, increasing debt, and concerns over the delivery of public services. The road maintenance levy will serve as collateral for the loan, allowing the government to tap into future revenue to repay it.