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..
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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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Cabinet Approves Sale of Kenya Pipeline Company and Other Initiatives - July 2025
The Cabinet has approved a significant step to privatize a portion of the Kenya Pipeline Company (KPC) by listing its shares on the Nairobi Securities Exchange (NSE), as part of President William Ruto's government's privatization agenda to reduce state budget allocations and enhance efficiency. This decision, however, has sparked public outrage, with the Motorists Association of Kenya (MAK) opposing the move due to concerns over transparency and the potential threat to a vital national asset. In a related development, the Cabinet has also cleared the rollout of the World Bank-backed National Youth Opportunities Towards Advancement (NYOTA) Project, a Sh30 billion initiative aimed at supporting over 820,000 young Kenyans, despite facing significant funding challenges. Additionally, the Cabinet has approved increasing payouts to road contractors from 40 percent to 80 percent of verified claims, leveraging funds from the securitization of the Road Maintenance Levy Fund (RMLF), a measure set to unlock stalled projects nationwide.
