Premium
Government releases Sh175 billion to unblock stalled Coast highway projects
President William Ruto launches the 30-kilometre Kwa Jomvu-Mariakani (A8) Dual Road in Kilifi County on February 26, 2025.
What you need to know:
The government has released Sh175 billion to settle pending bills and compensation claims
The projects are vital for the Northern Corridor, linking the Port of Mombasa to landlocked nations like Uganda, Rwanda, and the DRC, while the Kilifi stretch forms part of the "Silk Road" connecting Kenya to Tanzania.
Construction of sections of the Mombasa-Mariakani and Mombasa-Kilifi highways in the Coast region, which had stalled due to contractor payments and compensation delays affecting people affected by the project, will now resume after the government released Sh175 billion for the payment of verified road-construction bills.
Roads and Transport Cabinet Secretary Davis Chirchir said the long-standing arrears have weighed down the construction sector and increased construction costs.
Speaking in Mombasa while touring the projects, Mr Chirchir said the payments were made possible through the securitisation of the Road Maintenance Levy, a financing approach that allowed the government to access funds upfront against future levy collections.
“We have just rolled out the roads, a pending bill of Sh175 billion, and we expect an immediate impact on the construction sector as the stalled projects are set to resume. Part of my visit to the Coast was to ensure ongoing projects continue without delays and where we had compensation issues, like in Mazeras, Kanamai and Bombolulu are resolved,” said Mr Chirchir.
