Ruto Secures Ksh77 Billion Loan To Revive Stalled Road Projects
Kenya will receive a financial boost to support road improvements after Treasury Cabinet Secretary John Mbadi announced the acquisition of a Ksh77 billion (USD600 million) loan.
The finance is supported by the government’s road maintenance charge, which is collected from motorists at gas stations across the country.
In the midst of the government’s challenges with a tight budget and growing debt obligations, Mbadi unveiled plans to securitize the road maintenance fee, allowing the Kenya Roads Board to access cheaper loans.
The road maintenance fee is now fixed at Ksh18 (USD0.139) per litre of petrol.
Mbadi confirmed the loan, stating that the funds will go directly to the Kenya Roads Board, which generally handles road upkeep on behalf of the government.
Among other things, the loan will mostly be used to pay contractors for urgent road work as the government looks to China for further funding for road construction.
The Ksh78 million is one piece of the government’s funding puzzle.
The government is still pursuing a larger loan, which may take the shape of a privately placed bond or a syndicated loan.
Mbadi announced to the National Assembly on Wednesday, April 16, that the government has acquired the Ksh78 billion facility from the World Bank, which will be disbursed in June 2025.
CS John Mbadi says Kenya has secured a Ksh77 Billion Loan From World Bank and Ksh34 Billion From African Development Bank pic.twitter.com/zIiPGmbdeD
— Kenyans.co.ke (@Kenyans) April 16, 2025
“Doors are opening for external resources. The World Bank disbursement is coming in June,” the CS affirmed, saying that the delays were largely because of the Conflict of Interest Bill, which was pending.
Another loan of Ksh34.3 billion (USD265 million) will be released in a week, according to Mbadi.
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Kenya has relied extensively on loans to fund infrastructure projects, with the most recent coming months after President William Ruto secured a Ksh40 billion loan facility to resume 15 stalled road projects across 10 counties.
This follows Mbadi’s recent discussions with the Chinese Ambassador to Kenya Guo Haiyan, as well as the CS’s following trip to China.
It has also emerged that the government will proceed with the stalled extension of the Standard Gauge Railway (SGR), with funding secured from the Asian country.
This follows engagements that began in January where a consortium of Chinese companies will provide 40 percent of the funding for the 475km (295-mile) railway line from Naivasha to the border town of Malaba.
Ruto Secures Ksh77 Billion Loan To Revive Stalled Road Projects
