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Fuel levy windfall: Over 580 road projects restarted countrywide as securitisation pays off

Along the busy Kenol-Sagana-Marwa corridor, the construction is now in full swing

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by FELIX KIPKEMOI

News02 September 2025 - 18:30
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In Summary


  • Heavy machinery is back on site along the Nyeri-Othaya-Kangema (B23) road, where periodic maintenance, drainage upgrades, and re-carpeting are underway.
  • In Karatina, resurfaced roads and improved stages are restoring smoother access for traders and matatus, cutting travel times and reducing vehicle wear.
Ongoing construction works at the Gitau interchange/X




A sweeping infrastructure revival is underway across the country, with more than 580 stalled roadworks now back in motion.

At the heart of the turnaround is the government's bold decision to securitise a portion of the Road Maintenance Levy Fund (RMLF), which has raised Sh175 billion.

Through this strategic financing move, spearheaded by the Kenya Roads Board (KRB), the government has managed to clear verified debts owed to contractors and suppliers, paving the way for a large-scale revival of the critical road projects.

“This is the biggest infrastructure reboot in recent memory. The funds have not only cleared arrears but also restored confidence in the sector,” Roads and Transport Cabinet Secretary Davis Chirchir said during a past event.

The impact of this initiative is being felt across the country, from highways and urban access roads to rural feeder networks.

Bulldozers, graders, and tippers are active, as contractors who had previously downed their tools return.

Along the busy Kenol-Sagana-Marwa corridor, the construction is now in full swing.

In Karatina town, where construction had stalled for months due to land compensation disputes, progress is visible again.

The National Land Commission (NLC) has already disbursed Sh3.2 billion out of the Sh4.2 billion owed, paving the way for resumption of long-delayed works. In Nyeri, the impact is evident.

Heavy machinery is back on site along the Nyeri-Othaya-Kangema (B23) road, where periodic maintenance, drainage upgrades, and re-carpeting are underway.

This key corridor, linking Nyeri town through Othaya to Kangema, is vital for farmers transporting tea, coffee, milk, and horticultural produce to major markets.

Urban centres are also benefitting.

In Karatina, resurfaced roads and improved stages are restoring smoother access for traders and matatus, cutting travel times and reducing vehicle wear.

Across rural areas such as Kieni, Mathira, and Tetu, the Kenya Rural Roads Authority (Kerra) is carrying out spot improvements and routine maintenance to ensure villages remain connected to schools, health facilities, and local markets.

The three main agencies, the Kenya National Highways Authority (KeNHA), the Kenya Urban Roads Authority (Kura), and Kerra, are working in their respective jurisdictions with support from securitised funds.

Contractors who had abandoned sites over delayed payments have now returned, injecting new momentum into long-stalled projects.

Stakeholders say the decision to securitise has brought direct human and economic benefits. For contractors, cleared arrears mean business continuity and jobs saved.

For residents, it means safer, smoother, and more reliable roads that underpin trade, mobility, and regional development.

“By unlocking funds through securitisation, the government has injected new life into Nyeri’s infrastructure. This is not just about tarmac; it’s about reviving livelihoods,” a senior roads engineer in Nyeri observed.

In counties such as Meru, Kisii, Kakamega, and Nakuru, contractors are back on site, machinery is rolling, and communities are reconnecting to markets and services.

KRB securitised a portion of the Sh25 per litre fuel levy to raise the funds from investors.

The funds are being used to clear verified debts owed to contractors and suppliers, enabling road agencies to remobilise and deliver long-overdue projects that are critical to Kenya’s economic growth.

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