Kenya's State Department for Roads cuts pending bills 23.5% to KSh 98.17bn in year to June 2026

Pending bills owed by Kenya's State Department for Roads fell 23.5 per cent to KSh 98.17 billion in the financial year ended June 2026, according to the department's latest budget review report to the Treasury, Business Daily reported on 13 October 2026.

The backlog peaked at KSh 166.76 billion in 2023/24. It fell by KSh 30.19 billion in the year to June, after a KSh 38.40 billion reduction the year before, the newspaper reported. It put the combined cut at KSh 68.59 billion, or 41.1 per cent of the peak.

The department credits the securitisation of the Road Maintenance Levy Fund with helping settle outstanding payment certificates, Business Daily said. Under securitisation, the government commits part of future fuel levy collections to investors in return for cash now; that cash was used to pay old road debts.

The levy was raised from KSh 18 to KSh 25 per litre of petrol and diesel in July 2024. In April 2025 the government committed KSh 7 from every KSh 25 collected per litre to raise KSh 175 billion. Cabinet approved a further KSh 5 per litre in November 2025, lifting the portion committed to investors to KSh 12 of every KSh 25 collected.

Committing future collections leaves a smaller share for other road needs, Business Daily reported. Road building also slowed: 2,089.25 kilometres were built in the three years to June 2026, against 3,805 kilometres in the preceding three years, a fall of 1,715.75 kilometres, or 45.1 per cent, the newspaper said.

President William Ruto said in March, as quoted by Business Daily, that the securitisation bond would be brought to market in 2026 and listed on the Nairobi Securities Exchange so that people could trade it.

Separately, Cabinet approved payment of 28,726 verified claims worth KSh 23.74 billion, covering bills of KSh 50 million and below, Capital FM reported on 10 October 2026. The claims are 98 per cent of the 29,257 recommended for settlement by the Pending Bills Verification Committee. Bills above KSh 50 million will be paid progressively, and the National Treasury will oversee the payments.

The Kenya National Chamber of Commerce and Industry (KNCCI) welcomed the approval, The Star reported on 14 October 2026. Its president, Erick Rutto, said the payment would bring relief to businesses that have struggled with delayed payments. Some of the unpaid claims date back to 2005, according to Capital FM.

The chamber called the payout only an initial step towards resolving government arrears. It said prolonged verification had cost businesses opportunities and eroded the value of their claims through inflation, The Star reported. The committee received 115,617 claims worth KSh 664.8 billion.

Payments give priority to micro, small and medium enterprises (MSMEs), especially those owned by women, young people and persons with disabilities, according to The Star.

KNCCI asked the government to conclude verification of the outstanding claims and settle them promptly at national and county level. It also called for lower taxes and harmonised levies, fees and charges to cut the cost of doing business, and for better access to affordable, patient financing for small businesses.

The chamber cited a 2016 MSME survey that found more than 7.4 million MSMEs employing over 14.4 million people and contributing about 33.8 per cent of GDP, The Star reported.