Roads and Transport Cabinet Secretary Davis Chirchir defended the government's fuel levy securitisation program against transparency accusations. The minister assured citizens that comprehensive legal protocols guided the entire process. Treasury officials and the Attorney General's office provided necessary oversight throughout implementation. Kenya Roads Board stands prepared to address concerns from Parliament and media representatives. All statutory requirements were fulfillment before the program launch.
Chirchir addressed criticism following media coverage of the ministry's plan to resolve outstanding road sector obligations. Pending bills currently total Sh175 billion across various infrastructure projects nationwide. Kiharu MP Ndindi Nyoro questioned the borrowing arrangement's legality without parliamentary consultation. The lawmaker expressed concerns about fiscal sustainability and official debt record transparency. Government officials maintained that proper authorization channels were followed throughout the process.
The current administration inherited substantial unpaid commitments from previous leadership. Upon taking office, over 580 road construction projects faced suspension due to financial constraints. Contractors and communities experienced significant delays in infrastructure development programs. Government officials evaluated multiple financing mechanisms to address these accumulated obligations. Securitisation emerged as the most practical solution among available alternatives.
The financial structure involves the Kenya Roads Board selling rights to receive portions of maintenance levy collections. A Special Purpose Vehicle will manage Sh7 from each Sh25 per litre collected through current taxation. This arrangement operates independently without creating additional government liability beyond specific rights transfers. Contractors receive immediate payment for verified outstanding amounts through this mechanism. Remaining levy funds continue supporting ongoing road development and maintenance activities.
Chirchir addressed criticism following media coverage of the ministry's plan to resolve outstanding road sector obligations. Pending bills currently total Sh175 billion across various infrastructure projects nationwide. Kiharu MP Ndindi Nyoro questioned the borrowing arrangement's legality without parliamentary consultation. The lawmaker expressed concerns about fiscal sustainability and official debt record transparency. Government officials maintained that proper authorization channels were followed throughout the process.
The current administration inherited substantial unpaid commitments from previous leadership. Upon taking office, over 580 road construction projects faced suspension due to financial constraints. Contractors and communities experienced significant delays in infrastructure development programs. Government officials evaluated multiple financing mechanisms to address these accumulated obligations. Securitisation emerged as the most practical solution among available alternatives.
The financial structure involves the Kenya Roads Board selling rights to receive portions of maintenance levy collections. A Special Purpose Vehicle will manage Sh7 from each Sh25 per litre collected through current taxation. This arrangement operates independently without creating additional government liability beyond specific rights transfers. Contractors receive immediate payment for verified outstanding amounts through this mechanism. Remaining levy funds continue supporting ongoing road development and maintenance activities.
