Govt to Borrow Billions Using Fuel Levy to Revive Stalled Roads

Govt to Borrow Billions Using Fuel Levy to Revive Stalled Roads

Kenya’s road network is set for a major revival. On Wednesday, November 5, Transport Cabinet Secretary Davis Chirchir announced a bold plan to borrow billions using future fuel levy collections. The move aims to restart stalled road projects and settle long-standing contractor debts.

“We Must Act Now” — Chirchir Defends Fuel Levy Securitisation

Appearing before the National Assembly’s Transport and Infrastructure Committee, Chirchir revealed the government’s intention to securitise an additional Ksh5 per litre from the Road Maintenance Levy Fund (RMLF).

“The government intends to securitise another Ksh5 per litre of fuel to boost road construction,” Chirchir stated. “We are building on the success of the earlier Ksh7 per litre securitisation programme.”

This new measure will raise the total borrowing portion from Ksh7 to Ksh12 per litre, unlocking billions upfront.

“We Can’t Wait for Annual Collections” — Govt Explains Urgency

Under the securitisation model, part of the fuel levy will serve as collateral for bonds or loans issued through the Kenya Roads Board (KRB). This allows the government to access funds immediately instead of waiting for yearly collections.

“We must supplement exchequer allocations to avoid stalling projects,” Chirchir emphasized.

The Ministry plans to redirect allocations from the Roads Annuity Fund, Emergency Roads allocation, and Fuel Levy Agents to create borrowing room.

“Ksh890 Billion Gap Must Be Closed” — Projects Hang in the Balance

Chirchir revealed that the government faces a financing gap of Ksh890 billion for contracted works currently underway. The earlier Ksh7 per litre securitisation raised Ksh175 billion, with Ksh104 billion advanced to pay contractors.

“We need Parliament’s support to bridge this gap and get contractors back to work,” he urged.

The funds will go toward settling pending bills and reviving stalled road projects across the country.

“Parliament Must Step In” — Lawmakers to Review Proposal

To push the plan forward, Chirchir called on lawmakers to approve the additional securitisation. He stressed that road infrastructure is vital for economic growth and regional connectivity.

“This is not just about roads. It’s about jobs, trade, and development,” he said.

Committee chairperson George Kariuki is expected to table a comprehensive report on the ministry’s recommendations for parliamentary review.

“Kenyans Deserve Better Roads” — Public Reacts to Funding Plan

As news of the proposal spreads, Kenyans are expressing mixed reactions. Many support the plan, hoping it will finally fix neglected roads. Others worry about rising fuel costs and long-term debt.

“We need roads, but we also need transparency,” said a Nairobi resident.

With Parliament set to debate the plan, the country watches closely.

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Govt to Borrow Billions Using Fuel Levy to Revive Stalled Roads