Gov't clears road construction pending bills up to December 2025

The Ministry of Roads and Transport said the payments followed a commitment by President William Ruto to clear outstanding obligations owed to contractors, many of which had accumulated over several years.

According to the ministry, the settlement was enabled through the securitization of the Road Maintenance Levy, a financing mechanism that allowed the government to access funds in advance against future levy collections.

Delayed payments to contractors have for years been blamed for stalled projects, job losses, and escalating construction costs. Industry players have consistently warned that prolonged uncertainty over payments forced firms to slow down works, lay off staff, or depend on costly short-term loans to sustain operations.

Confirming the settlement, local road contractor Daniel Wamahiu said his firm had received all outstanding payments owed by the ministry.

“We have received the pending bills that were owed to us by the Ministry of Roads. This has significantly eased the financial pressure contractors have been facing,” Wamahiu said.

He noted that delayed disbursements had severely strained cash flows across the sector, making it difficult for contractors to meet routine obligations such as paying workers, servicing bank loans, and maintaining equipment.

“Even when work is ongoing, contractors still have to pay salaries, fuel machinery, and repay banks. When payments delay for long periods, projects stall not because of lack of capacity, but because working capital runs out,” he said.

The Ministry of Roads said the securitization model was adopted as a one-off intervention aimed at clearing the backlog of verified arrears while ensuring that road maintenance and construction activities continue without disruption.

Contractors say the settlement of pending bills is expected to restore confidence in government-funded infrastructure projects, allowing firms to remobilize to sites, retain skilled workers, and complete stalled works.

“Once pending bills are settled, contractors can return to sites and plan better. It also improves confidence from banks and suppliers,” Wamahiu said.

However, analysts caution that clearing existing arrears will not be sufficient unless accompanied by improved project planning, timely release of funds, and stronger contract management systems to prevent the accumulation of new pending bills.