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Originally published by Nation Business
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business
January 26, 2026
18h ago

State to issue Sh175bn roads bond in February

State to issue Sh175bn roads bond in February

Proceeds will settle pending bills to contractors and repay loans from banks...

✨ 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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