GOVERNMENT CUTS ROAD CONTRACTOR ARREARS BY SH68.59 BILLION IN TWO YEARS
The government has reduced outstanding road-sector bills by Sh68.59 billion, bringing the amount owed to contractors down to Sh98.17 billion by June 2026, despite a slowdown in road construction.
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The government has reduced outstanding road-sector bills by Sh68.59 billion over two financial years, bringing the total amount owed to contractors down to Sh98.17 billion by June 2026.
The reduction marks a decline from Sh166.76 billion recorded in the 2023/24 financial year, easing some of the pressure caused by delayed payments to road construction contractors.
According to reports based on budgetary review figures, the government has relied on the securitisation of the Road Maintenance Levy Fund (RMLF) to raise financing for settling pending bills.
The arrangement allows the government to use anticipated future fuel levy collections to secure financing, providing funds to pay contractors without relying entirely on immediate budget allocations.
However, the reduction in outstanding bills comes amid a slowdown in road construction activity.
The State Department for Roads reportedly oversaw the construction of 2,089.25 kilometres of roads in the three years to June 2026, compared with 3,805 kilometres during the preceding three-year period.
The figures point to continued challenges in financing infrastructure projects, even as the government works to clear debts owed to contractors.
The pace of settling pending bills and the availability of funds for new projects will remain important factors in determining how quickly road construction activities progress across the country.
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Written by Anne Moses
Reporter and staff writer at Getembe News.
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