Transport Cabinet Secretary Davis Chirchir has announced that all pending bills for certified works and accrued interest in the Ministry of Roads, up to 31 December 2024, have been fully settled.
The ministry, he said, has paid a total of Sh123 billion, a move that has restored contractor confidence and allowed road works to resume nationwide.
Since April 2025, the payment programme has unlocked or accelerated 875 road contracts across the country, enabling the swift continuation of key infrastructure projects across the country.
“By settling all certified works and accrued interest, we have restored confidence in the sector and ensured that contractors can return to site and deliver projects without uncertainty,” Chirchir said.
The settlement of the bills was enabled through the securitisation of a portion of the Road Maintenance Levy Fund (RMLF).
This move, done through the creation of a Special Purpose Vehicle (SPV), unlocked Sh175 billion upfront to settle verified contractor arrears and revive stalled road projects.
In a brief to the cabinet, Chirchir also highlighted a major reform in driver licensing aimed at improving road safety and modernising transport services.
Through innovative financing arrangements, the CS stated that the Cabinet approved the rollout of Second-Generation Smart Driving Licences under a public-private partnership model.
The new system integrates smart licences with an instant fines mechanism, a mobile licence wallet, and a driver merit and demerit points framework.
“The introduction of smart licences is part of our commitment to modernising licensing and improving road safety,” CS Chirchir said, noting that the system will make it easier to monitor driving behaviour while enhancing compliance.
The combined effect of clearing pending payments and introducing innovative licensing solutions is expected to accelerate road development, improve traffic management, and strengthen enforcement of road safety regulations across Kenya.
According to Chirchir, the smart licensing system is a key pillar of the government’s broader road safety strategy, which seeks to reduce accidents and improve compliance through technology rather than purely punitive measures.
“Technology allows us to improve safety, enhance accountability and modernise service delivery at the same time,” he said.
The Cabinet Secretary said the public-private partnership model will reduce the immediate financial burden on the Exchequer while ensuring the rapid deployment of modern licensing infrastructure.
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