Contractors Return to Site as State Settles Sh177 Billion Infrastructure Debt

The national government has concluded the settlement of Sh177 billion in pending bills owed to road contractors, ending a financial deadlock that has hampered infrastructure development since 2021. This liquidity injection is expected to facilitate the immediate resumption of work on approximately 6,000 kilometers of road networks across the country.

Deputy President Kithure Kindiki confirmed the payout during an inspection of infrastructure projects in Kirinyaga County on Wednesday. The settlement aims to address the backlog of 875 unhonored contracts that led to widespread site abandonments and equipment demobilization over the last four years.

In Kirinyaga County, the government has allocated Sh29 billion for the tarmacking of 510 kilometers of new roads. These projects are intended to improve connectivity within the agricultural hub, which has faced logistical challenges in transporting tea and coffee during rainy seasons.

Among the specific sites visited was the Kagumo-Mununga-Kiamaina-Kianjagi Road in Kirinyaga Central Constituency. The project is part of a wider corridor serving the Mununga tea factory, where farmers have previously reported significant losses due to impassable rural access routes.

The Deputy President was joined by Kirinyaga Governor Anne Waiguru, Deputy Governor David Githanda, and Kirinyaga Central MP Joseph Gitari. The delegation noted that the resumption of works would rely on contractors adhering to strict completion timelines to recover the time lost during the funding hiatus.

President Ruto has previously emphasized the use of the Road Maintenance Levy Fund as a primary mechanism to secure financing for these arrears. By securitizing future levy revenues, the state has been able to generate the immediate cash required to pay out certificates of work that had been pending since the previous administration.

Local leaders, including Nandi County Woman Representative Cynthia Muge and County Assembly Speaker Muteti Murimi, were present to witness the progress. The government maintains that the completion of these 6,000 kilometers is a priority for the current fiscal cycle to prevent further cost escalations associated with stalled sites.

The Ministry of Roads and Transport indicated that contractors for the 510-kilometer Kirinyaga cluster have already begun mobilizing personnel and machinery back to the region. This development follows a period where many firms had downsized or ceased operations due to the inability to service bank loans taken for project execution.

With the debt cleared, the focus shifts to the quality of execution. The government has issued a directive to the Kenya Rural Roads Authority and the Kenya National Highways Authority to ensure that the revived projects meet engineering standards and provide value for the significant public investment.