How Treasury diverted Sh7bn to French firms
Government irregularly diverted billions from fuel levy kitty to compensate French firms...
✨ 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- The funds were withdrawn from the Road Maintenance Levy Fund (RMLF), intended for pending bills, not contract termination compensation.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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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.
