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HomeDaily NewsFriday, May 8, 2026Treasury Defends Meru Fund Stoppage Amid Rising Sh600mn Legal Compensation Bill - May 2026
Business & Economy3 stories from 2 sources

Treasury Defends Meru Fund Stoppage Amid Rising Sh600mn Legal Compensation Bill - May 2026

The National Treasury has halted transfers to Meru County due to a substantial legal compensation bill nearing Sh600 million, owed to a French investor. Kenya's National Treasury is under scrutiny for allegedly diverting Sh7.3 billion from the fuel levy to illegally compensate a consortium of French firms for a terminated road construction contract. The Ministry of Roads and Transport has proposed a new framework to allocate Sh10.5 billion from the Road Maintenance Levy Fund directly to county governments. These stories reveal ongoing tensions between national government fiscal management and county-level funding.

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Friday 4:35 PMCapital Business

Treasury defends Meru fund stoppage amid rising Sh600mn legal compensation bill

Treasury defends Meru fund stoppage amid rising Sh600mn legal compensation bill

The National Treasury has halted transfers to Meru County due to a substantial legal compensation bill nearing Sh600 million, owed to a French investor.

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Key Highlights

The National Treasury has halted transfers to Meru County due to a substantial legal compensation bill nearing Sh600 million, owed to a French investor.

  • The outstanding debt, including accrued interest, has ballooned to approximately Sh600 million.
  • Treasury Cabinet Secretary John Mbadi is defending the decision to prevent further financial losses on the award.
  • The dispute involves French investor Michel Dechauffour, who was awarded compensation after being evicted from a tourism facility in Meru National Park in 2018.
Friday 12:45 PMCapital Business

Counties to receive Sh10.5bn Road Levy share under new funding proposal

Counties to receive Sh10.5bn Road Levy share under new funding proposal

The Ministry of Roads and Transport has proposed a new framework to allocate Sh10.5 billion from the Road Maintenance Levy Fund (RMLF) directly to county governments.

Read Story

Key Highlights

The Ministry of Roads and Transport has proposed a new framework to allocate Sh10.5 billion from the Road Maintenance Levy Fund (RMLF) directly to county governments.

  • Counties stand to receive 15 percent of the RMLF, amounting to Sh10.5 billion annually.
  • The proposal was presented to the Senate Standing Committee on Roads, Transportation and Housing.
  • This move aligns with a 2025 High Court ruling and aims to clarify roles for national and county road maintenance.
Thursday 11:16 PMNation BusinessFirst

How Treasury diverted Sh7bn to French firms

How Treasury diverted Sh7bn to French firms

Kenya's National Treasury is under scrutiny for allegedly diverting Sh7.3 billion from the fuel levy to illegally compensate a consortium of French firms for a terminated road construction contract.

Read Story

Key Highlights

Kenya's National Treasury is under scrutiny for allegedly diverting Sh7.3 billion from the fuel levy to illegally compensate a consortium of French firms for a terminated road construction contract.

  • The funds were withdrawn from the Road Maintenance Levy Fund (RMLF), intended for pending bills, not contract termination compensation.
  • The payment was made to a French consortium that was awarded the contract for the Nairobi-Nakuru-Mau Summit Road under the previous administration.
  • The Auditor-General's report questions the value for money as the contract was cancelled by the current administration before work began, with the project subsequently awarded to Chinese contractors.
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