The government has mobilised Sh139 billion to clear certified outstanding bills owed to road contractors as it seeks to revive stalled projects and accelerate ongoing road works.
Payments for eligible works completed in the last quarter are expected to begin today (August 21) and be completed by August 28, Roads and Transport Cabinet Secretary Davis Chirchir said on Thursday.
The move is expected to offer relief to contractors who have faced delayed payments, which have slowed the implementation of several road projects and strained the finances of construction firms.
Speaking during a meeting with road contractors, engineers and technical officers from the State Department for Roads and its implementing agencies, Chirchir said the government had received the first tranche of the latest financing programme and was expecting the next tranche shortly.
The CS said the new financing framework (securitisation) was necessary because conventional exchequer allocations were insufficient to meet the cost of ongoing road works while also settling accumulated obligations.
“We are not simply clearing yesterday’s pending bills. Our objective is to stop creating tomorrow’s pending bills,” Chirchir said.
The latest intervention follows an earlier programme under which the government leveraged Sh7 per litre of the Road Maintenance Levy Fund to mobilise Sh175 billion through securitisation.
The funds enabled the State to settle pending bills for certified works and eligible interest obligations up to March 2026, allowing contractors whose projects had slowed to resume works.
Contractors owed Sh50 million and below, numbering about 560, were paid early last year, with the government continuing to clear the remaining obligations through December.
Chirchir said the new payments would be processed through an established framework based on properly measured, verified and certified claims.
He urged contractors to remain on site and accelerate implementation while adhering to contractual requirements on cost, timelines and quality.
The CS also sought to reassure contractors that the payment process would not be influenced by intermediaries or preferential treatment.
“There should be no middlemen and no preferential treatment. If a certificate is properly certified and eligible, it should be processed in accordance with the approved payment framework,” he said.
The government is also tightening controls around certification of road works as it seeks to ensure that the increased financing translates into value for money.
Chirchir directed engineers and technical officers to take greater responsibility for the quality, cost and scope of road projects, warning them against certifying work they cannot professionally defend.
“Certify only work that you can professionally defend,” he said.
He further directed road agencies to strengthen project preparation before procurement, particularly through better design development, site investigations and verification of quantities.
The CS warned that problems such as exhausted contract quantities, premature road failure and unjustified certification should be addressed before construction begins, saying professional accountability would follow where shortcomings were established.
The government’s renewed push to settle contractors’ bills comes as the road sector grapples with a financing gap that has contributed to delays in completing projects and increased pressure on contractors.
Chirchir said the government’s responsibility was to mobilise resources and establish a predictable financing framework, while contractors must deliver projects and engineers safeguard quality and value for money.
