NAIROBI, Kenya, July 29 – Road contractors with pending payments will get an additional 40 % payout after Cabinet approval.
Already, the federal government has paid them 40 % by the Road Maintenance Levy Fund (RMLF), leaving a stability of 20 %.
“To tackle pending payments, the Cabinet accepted additional measures to speed up momentum within the roads sector. This builds on the profitable rollout of the highway financing coverage by the securitisation of the Road Maintenance Levy Fund (RMLF), which has already disbursed KSh64.2 billion, settling 40% of verified contractor claims of 575 contracts masking 393 tasks,” the Cabinet mentioned in an announcement.
“To deepen this novel mannequin in infrastructure growth, the Cabinet accepted a further fee of as much as 40%, bringing the entire settlement to 80%, on the situation that contractors lengthen the ultimate fee deadline by one other 120 days.These measures have resolved long-standing monetary obligations, unlocked stalled tasks, improved contractor money circulation, and ensured continuity in infrastructure growth nationwide.”
It comes after Roads and Transport Cabinet Secretary Davis Chirchir defended RMLF, insisting that the securitisation of the levy is authorized, clear, and fiscally accountable.
Chirchir defined that the federal government turned to securitisation to boost Sh175 billion to repay verified pending payments inherited from the earlier administration, which had stalled over 580 highway tasks throughout the nation.
