State clears Sh177bn arrears, road contractors back on site

WANGARI MWANGI-KNA

Deputy President Kithure Kindiki has announced that the government has settled the Sh177 billion outstanding debt owed to road contractors, paving the way for the resumption of stalled infrastructure projects across the country.

Prof Kindiki said clearing the pending bills has enabled contractors to return to their sites, with construction now underway on key road projects nationwide.

“We have cleared all pending debts owed to road contractors, which is why you are seeing the resumption of construction works on road projects from Namanga to Moyale, and from Busia to Lamu, including the Mau Mau roads in Central that had stalled due to unpaid bills,” said the Deputy President.

He noted that the move signals renewed momentum by the Kenya Kwanza administration to deliver on its promise of expanding and modernizing the country’s road network.

According to the DP, the government is targeting the construction of at least 6,000 kilometres of tarmac roads before the end of the year.

“Give us a few months and you will see the kind of transformation between now and the end of this year,” he stated.

In addition to road construction, the Deputy President said the government will also prioritize other major infrastructure projects, including electricity connectivity and modern markets, as part of the government’s broader economic transformation agenda.

He attributed the renewed infrastructure push to what he described as improved economic stability following stringent fiscal and monetary measures implemented over the past two years.

The measures, he said, were aimed at steering the country out of an economic slump triggered largely by the Covid-19 pandemic. “The government has stabilized the economy.

The first thing we did was to reduce the cost of fertilizer from Sh7,000 to Sh2,500 through the government subsidy programme.

Farmers doubled their production and we also received adequate rainfall which increased our harvest, and that is how the cost of maize flour dropped from Sh250,” he said.

Prof Kindiki further noted that the government had taken deliberate steps to strengthen the Kenyan shilling against the US dollar.

He said the exchange rate, which had previously hit Sh165 to the dollar, has stabilized at between Sh128 and Sh129 over the past two years.

“The good news is that economists are telling us that in the next few months the shilling is going to be stronger and therefore the exchange rate will reduce even further.

"Now that the economy is in a good place, we will build roads, we will provide electricity, we will construct markets,” he added.

The Deputy President was speaking at the Field Marshal Muthoni Kirima Bus Park in Nyeri town during a development tour of the county.

During the visit, Prof Kindiki delivered Sh12 million to two traders-led savings and credit cooperative societies in Nyeri town.

The funds, which include a Sh10 million contribution from President Ruto, form part of development pledges made to residents during the Head of State’s January tour of the county.

The money is intended to strengthen the saving culture among traders, enhance access to affordable credit and promote economic empowerment.