Road contractors have welcomed the government’s decision to clear verified pending bills for road construction up to December 2025, a move expected to ease financial strain and revive stalled projects across the country.
The Ministry of Roads and Transport confirmed the payments have been made following a pledge by President William Ruto to resolve long-standing arrears that have weighed down the construction sector.
The settlement was made possible through the securitisation of the Road Maintenance Levy Fund(RMLF), a financing approach that allowed the government to access funds upfront against future levy collections.
For years, delayed payments have been cited as a major cause of stalled road projects, job losses, and rising construction costs.
Industry players say the uncertainty forced many firms to slow down works, retrench staff, or rely on costly short-term borrowing to remain operational.
Local road contractor Daniel Wamahiu from central region confirmed that 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 payments had severely strained cash flows across the sector, making it difficult for contractors to meet key obligations such as paying workers, servicing 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 added.
The ministry described the securitisation model as a one-off intervention aimed at clearing the backlog of verified arrears while ensuring road maintenance activities continue uninterrupted.
Contractors say the move could help restore confidence in government-funded infrastructure projects by enabling firms to remobilise to sites, retain skilled workers, and complete delayed works.
“Once pending bills are settled, contractors can return to sites and plan better. It also improves confidence from banks and suppliers,” Wamahiu noted.
Analysts, however, caution that clearing arrears alone may not solve the problem unless it is accompanied by stricter project planning, timely disbursement of funds, and improved contract management to prevent the accumulation of new pending bills.
As road works resume across the country, attention now shifts to whether the government can maintain payment discipline and ensure contractors are paid on time to keep infrastructure projects on schedule.
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