President William Ruto has revealed that the government has released sh60 billion to pay contractors primarily Chinese firms who had halted infrastructure projects due to delayed payments.
Speaking during an interdenominational church service in Kapng’etik, Elgeyo Marakwet County on Sunday, April 13, Ruto said the funds will jumpstart roadworks that had stalled for years.
“The delays were due to financial challenges both locally and globally, which we’ve been addressing over the past two years,” said the president.
“In the last two weeks alone, we’ve paid Ksh60 billion to contractors. Most had abandoned works midway, but they’ll be returning to site from next week.”
Loan Funded Through Road Levy
According to the National Treasury, the funds were secured through a loan from a consortium led by the Trade and Development Bank.
The short-term facility will be repaid using proceeds from the road maintenance levy a fuel-based tax used to fund road infrastructure.
This development may signal a rise in fuel prices in the coming months, as the government leans on the levy to repay the debt.
Treasury Cabinet Secretary John Mbadi explained the decision came amid increasing pressure over unfinished projects, ballooning public debt, and concerns about service delivery.
The government plans to use the levy as collateral to access future revenues.
Mbadi also disclosed that the state still owes contractors and landowners Ksh175 billion, and aims to issue a medium-term bond by June to raise an equivalent amount.
“We need to urgently revive stalled road projects,” Mbadi said in a Bloomberg interview.
He also confirmed the government is negotiating with contractors to waive up to 50% of accrued interest, with the savings redirected to complete pending works.
President Weighs In on Drama Festival Controversy
President Ruto also addressed the controversy over the play Echoes of War performed by Butere Girls High School during the National Drama Festival in Nakuru on April 10.
In a pointed statement, Ruto warned former Kakamega Senator Cleophas Malala against influencing students negatively.
“We must protect our children from pedophiles, drug dealers, and those who aim to corrupt them those who teach them to hate their parents, teachers, leaders, or country,” Ruto said.
