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Originally published by KBC Top Stories
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June 11, 2025
11mo ago

CS Chirchir: New road funding model to ease budget pressure, spare taxpayers

CS Chirchir: New road funding model to ease budget pressure, spare taxpayers

In a landmark move poised to transform Kenya’s infrastructure financing landscape, the government has unveiled a new strategy for road funding that will ease pressure on the 2025/26 budget while shielding taxpayers from new levies. The Kenya Roads Board (KRB), under the Ministr..

✨ Key Highlights

The Kenyan government has introduced a new road funding strategy that will alleviate budget pressures for the 2025/26 fiscal year without imposing new taxes on citizens.

  • Through the new model, KSh 175 billion is being unlocked by securitizing part of the Road Maintenance Levy Fund (RMLF).
  • Davis Chirchir, the Cabinet Secretary for Roads and Transport, highlighted that this approach reduces dependence on borrowing and alleviates fiscal deficits.
  • The initiative aims to address a backlog of contractor arrears and revive over 580 stalled road projects without impacting public debt metrics.

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