Government moots new funding model for roads construction

George Kaiga (KNA)

The Government is seeking extra funding mechanisms for road maintenance, development and rehabilitation.

As such, the Kenya Roads Board is holding public participation forums across the country on the Draft Kenya Roads Board (Additional Funding) Regulations, 2025 to prescribe a procedure for setting aside a portion of the Road Maintenance Levy Fund (RMLF)) to secure additional funds and bridge budgetary shortfall.

“The roads sector requires approximately 175 billion shillings annually for maintenance. The current funding is insufficient to meet this need,” said the Western Kenya Rural Roads Authority (KeRRA) Manager Eng. Edwin Cheserek said during the public forum.

Speaking at KeRRA offices in Kakamega during a public participation and campaigns, Eng. Cheserek said there is an urgent need to establish a mechanism to secure additional funds to enhance working capital and bridge the financing gap.

The draft regulation proposes to use, as security, seven shillings of the 25 shillings, proceeding from a litre fuel to the RMLF to raise Sh175 billion shillings annually to bridge the financial deficit in the sector.

“The additional funds will support not just the maintenance of roads as has been the case but also the development and rehabilitation of roads,” he added.

He said road construction is capital intensive and that Sh910 billion is needed for ongoing work, with Sh175 billion in pending payments.

He stated that currently, there are 239,122 kilometers being 69 per cent classified roads eligible for RMFL, while Sh5.1 trillion is required against the paltry Sh1.1 trillion budgeted over the 10 years’ period.

“Kenya has a backlog of approximately Sh500 billion for road construction and maintenance needs,” he said.

Eng. Cheserek said this poses a huge challenge that continues to impede on construction and causes delays in completion of crucial infrastructure projects.

He, however allayed fears of any fuel price increase, saying the government will continue to regulate the energy sector from inflation and cushion motorists.

Some participants had earlier raised concern that the new changes may result in a hike in fuel levy.

The government has already announced plans to introduce tolling as a key strategy to finance road infrastructure development and maintenance under a public-private-partnership (PPP) model.

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