Cabinet clears 80pc road contractor claims after road levy securitization

The decision builds on a controversial financing model that Roads and Transport Cabinet Secretary Davis Chirchir defended, insisting that the securitization of the levy is legal, transparent, and fiscally responsible. - Kenya breaking news | Kenya news today | Capitalfm.co.ke..
✨ Key Highlights
President William Ruto's Cabinet has approved increasing payouts to road contractors from 40 percent to 80 percent of verified claims, a move set to unlock stalled projects nationwide. This decision leverages funds from the securitization of the Road Maintenance Levy Fund (RMLF).
- Up to 80 percent of verified road contractor claims will now be released, doubling the previous 40 percent settlement.
- The additional payout is sourced from the securitization of the Road Maintenance Levy Fund (RMLF), a model that has already disbursed Sh64.2 billion.
- Roads and Transport Cabinet Secretary Davis Chirchir defended the securitization model, stating it is legal and aims to pay off Sh175 billion in pending bills inherited from the previous administration, which had stalled over 580 road projects.
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