The paralysis that has gripped Kenya’s road construction sector for years has finally been broken. In a decisive move to resuscitate the country’s stalled infrastructure engine, the government has cleared a staggering Ksh 177 billion in pending bills owed to road contractors, ending a cycle of debt that had driven many firms to the brink of bankruptcy.

Interior Cabinet Secretary Kithure Kindiki confirmed the settlement, declaring that the "paving of the way" is literal. For years, the landscape has been littered with abandoned excavators and half-finished highways—monuments to a cash crunch that saw contractors flee sites as their invoices gathered dust at the Treasury. The clearing of these arrears, covering verified bills up to December 2025, is a frantic injection of liquidity designed to get the excavators humming again.

The Securitization Solution

The magic bullet for this payout was the securitization of the Road Maintenance Levy Fund (RMLF). By borrowing against future fuel levy collections, the government unlocked the cash needed to pay the pipers immediately. It is a bold financial workaround: leveraging tomorrow’s petrol taxes to fix today’s potholes.

• The Impact on Contractors: For local firms like that of Daniel Wamahiu, who confirmed receipt of funds, this is a lifeline. Many had faced auctioneers, labor unrest, and ruined credit ratings. The payout allows them to service bank loans, pay wage arrears, and remobilize equipment to site.
• The Return to Work: The Ministry of Roads expects an immediate resumption of works on critical arteries. This is not just about tarmac; it is about the economic multiplier effect. Construction creates jobs, buys cement, and fuels transport.

A Lesson in Fiscal Discipline

While the payout is cause for celebration, it is also a cautionary tale. The accumulation of Ksh 177 billion in unpaid bills points to a systemic failure in budget management—awarding contracts without the cash to back them.

As the road crews return to work, the government faces the scrutiny of a public tired of excuses. The money has been paid, the excuses are gone. Now, the people expect to see the roads. The pressure is on to deliver quality infrastructure at speed, proving that this massive financial outlay was an investment, not just a bailout.