‘We Have No Apologies!’ – CS Mbadi Defends Fuel Levy Securitization
Treasury Cabinet Secretary John Mbadi has weighed in on the controversy over securitising gasoline levies, vehemently defending the proposal and portraying it as an essential step toward reviving delayed infrastructure projects.
Speaking on Wednesday, Mbadi dismissed criticism of the plan, stating that the government had no regrets and would stick to it.
“So there is nothing secret about securitisation. Everybody knows it,” Mbadi said.
“Where does he live if he doesn’t know that we were securitising this money? And we will continue securitising it. And we have no apologies to make.”
Kenya's treasury Cs John Mbadi swift and well detailed response to the wild allegations on securitization by Wamunyoro treasury Cs Ndindi Nyoro.
— Amakanji Thomas (@AmakanjiThomas) July 16, 2025
Mbadi always takes time to explain complex matters easily & clearly. pic.twitter.com/4l3GRho0dq
The CS was reacting to Kiharu MP Ndindi Nyoro, who had criticized the decision.
The fuel charge, which is currently Ksh25 per litre, includes an initial Ksh18 dedicated to road maintenance and an additional Ksh7 established by the Kenya Kwanza administration.
The treasury chief stated that the Ksh18 remains unchanged and is used to support normal upkeep.
However, the additional Ksh7 was used in a different way, via a financial strategy known as securitization.
“We had a choice. Continue misusing this additional seven shillings on Maram roads that get swept away every rainy season, or use it to get contractors back on the road. We chose the latter,” Mbadi explained.
According to Mbadi, by securitizing the Ksh7 component of the fee, the government has already raised more than Ksh60 billion, with a goal of Ksh175 billion.
Mbadi indicated that the funds are being utilized to pay contractors and resume road improvements.
“If you securitise this money, and by the way, we have already received over Ksh60 billion, and you can see road contractors are back on the road, but we are raising Ksh175 billion,” Mbadi continued.
“If you add that, if you use even half of that money this financial year and add it to our normal budget of about Ksh57 billion, you will have over Ksh120 billion.”
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He added, “You will pay all the certificates for the whole financial year.”
Mbadi’s thoughts were echoed by Transport CS Davis Chirchir, who defended the move, stating that the Kenya Roads Board (KRB) securitized the gasoline fee to pay off debts and restart stalled projects.
Both Mbadi and Chirchir’s responses contradict Nyoro’s claims that the government discreetly implemented an additional Ksh7 fuel fee during a period when global oil prices were falling.
According to Nyoro, who was speaking after the sharp fuel price hike in the latest EPRA review, this was more than a revenue-raising measure, as the levy was allegedly used as collateral to secure the Ksh175 billion as a loan.
‘We Have No Apologies!’ – CS Mbadi Defends Fuel Levy Securitization
