The Kenyan government has taken a major step towards restarting numerous halted road works by settling outstanding contractor payments through an innovative financing strategy. The move is expected to ease financial pressures that have sidelined critical infrastructure development and sparked optimism across the construction industry.
Government Clears Verified Pending Bills
Officials from the Ministry of Roads and Transport confirmed that verified arrears owed to road contractors up to December 2025 have now been paid. The settlement stems from a financing mechanism that leverages future collections from the Road Maintenance Levy Fund (RMLF), allowing the state to release funds upfront.
Industry leaders say the delayed payments were a significant factor behind project standstills, rising costs, and workforce layoffs. With the backlog now reduced, firms are better positioned to remobilize equipment, pay workers, and resume work at project sites.
Boosting Contractor Confidence and Employment
Local contractors welcomed the payment relief, noting that consistent cash flow is essential to sustain operations and retain skilled personnel. With funds released, companies now have the financial breathing room to meet obligations such as wages and supplier bills—challenges that had previously throttled progress on many sites.
Challenges and Expert Insights
While the move has been well received, some analysts caution that clearing arrears alone won’t prevent future slowdowns. They highlight the need for stronger planning, efficient disbursement practices, and improved contract oversight to forestall new backlogs of unpaid bills.
Outlook for Road Construction
As roadworks restart in regions across Kenya, hopes are high that the injection of funds will accelerate timelines and enhance delivery of infrastructure projects that have languished in recent years. Continued discipline in payment processes is seen as critical to maintaining this progress and ensuring lasting benefits for communities and the broader economy.
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