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HomeDaily NewsTuesday, January 27, 2026Kenya to Issue Sh175bn Roads Bond and Plans Six Mega Dams - January 2026
Business & Economy3 stories from 2 sources

Kenya to Issue Sh175bn Roads Bond and Plans Six Mega Dams - January 2026

The Kenyan government is set to issue a Sh175 billion securitised roads bond in February to clear outstanding debts to contractors and repay commercial bank loans. This move is intended to resume stalled road works across the country. Separately, the government plans to construct six mega dams starting in 2026. This project aims to expand irrigation to two million acres of farmland, boosting food security in arid and semi-arid lands (ASALs). In terms of existing fund distribution, the National Treasury reported that Nairobi, Turkana, and Nakuru counties have been the largest beneficiaries of the Sh4.04 trillion equitable revenue share since devolution began in FY 2013/14.

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Tuesday 9:50 AMCapital Business

Nairobi, Turkana Counties biggest recipients of Sh4tn equitable revenue share

Nairobi, Turkana Counties biggest recipients of Sh4tn equitable revenue share

Nairobi, Turkana, and Nakuru counties are the largest beneficiaries of Kenya's equitable revenue share, having received significant allocations totaling Sh4.04 trillion since devolution began in FY 2013/14, according to the National Treasury.

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Key Highlights

Nairobi, Turkana, and Nakuru counties are the largest beneficiaries of Kenya's equitable revenue share, having received significant allocations totaling Sh4.04 trillion since devolution began in FY 2013/14, according to the National Treasury.

  • Nairobi County has received the highest amount at Sh195.6 billion, followed by Turkana with Sh138 billion.
  • The former Deputy President Rigathi Gachagua accused some northern counties, including Mandera (Sh124 billion) and Wajir (Sh90 billion), of misusing funds amidst ongoing development challenges.
  • The Treasury attributes disbursement delays to factors such as late enactment of legislation, budget rationalization, and constrained fiscal space.
Monday 9:30 PMCapital Business

Govt plans six mega dams, targets 2mn acres in irrigation push

Govt plans six mega dams, targets 2mn acres in irrigation push

The Kenyan government plans to construct six mega dams starting in 2026 to expand irrigation to two million acres of farmland, aiming to boost food security and mitigate climate change impacts in arid and semi-arid lands (ASALs).

Read Story

Key Highlights

The Kenyan government plans to construct six mega dams starting in 2026 to expand irrigation to two million acres of farmland, aiming to boost food security and mitigate climate change impacts in arid and semi-arid lands (ASALs).

  • The initiative, spearheaded by the State Department for Irrigation, aims to shift from rain-fed agriculture to large-scale commercial farming.
  • Principal Secretary Ephantus Kimotho emphasized irrigation's role in climate resilience, stating it will be a core pillar of agricultural production.
  • Key projects include Lowaat Dam in Turkana County and Radat Dam in Baringo County, among others, with the goal of reducing reliance on food imports and stimulating economic activity.
Monday 7:45 PMNation BusinessFirst

State to issue Sh175bn roads bond in February

State to issue Sh175bn roads bond in February

Kenya is set to issue a Sh175 billion securitised roads bond in February to clear outstanding debts to contractors and repay commercial bank loans. This move aims to alleviate the financial crunch on contractors and resume stalled road works across the country.

Read Story

Key Highlights

Kenya is set to issue a Sh175 billion securitised roads bond in February to clear outstanding debts to contractors and repay commercial bank loans. This move aims to alleviate the financial crunch on contractors and resume stalled road works across the country.

  • The bond will be issued in tranches, with a preference for investment clubs, as the local market cannot accommodate a single issuance of Sh175 billion.
  • Martin Agumbi, acting Director General of the Kenya Roads Board (KRB), stated the proceeds will fully settle loans taken to clear pending bills.
  • Proceeds will repay loans from banks including Trade Development Bank, KCB Bank Kenya, UBA Bank Kenya, and Absa, which provided Sh174 billion to clear pending bills accumulated from 2005 to 2024.
  • The bond is secured by the Road Maintenance Levy (RML) Fund, with Sh12 from every Sh25 collected per litre of fuel earmarked for repayment.
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