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Nairobi — Roads and Transport Cabinet Secretary Davis Chirchir has dismissed allegations that the government has plunged the country into fresh debt through the securitization of the Road Maintenance Levy, insisting that the financing model is both legal and fiscally responsible.
In a statement to newsrooms on Wednesday, Chirchir explained that the government turned to securitization to raise Sh175 billion to pay off verified pending bills inherited from the Uhuru Kenyatta administration.
These unpaid bills, Chirchir asserted, had stalled more than 580 road projects across the country, derailing critical infrastructure development and straining contractors.
“It is important to emphasize that this decision was made transparently, with full adherence to the law, and in line with best financial practices,” the statement read in part.
Only Sh7 of Sh25 securitized
He clarified that securitization in this context does not constitute new debt.
“Rather, it is the sale of the rights by the Kenya Roads Board to a Special Purpose Vehicle (SPV) to receive a portion of the future Road Maintenance Levy–specifically Sh7 from the current Sh25 per litre levy.”
The SPV, he noted, operates independently to raise funds upfront and repay contractors, with no liability reverting to the Kenya Roads Board.
Chirchir added that the process underwent due diligence and was cleared by both the National Treasury and the Attorney General’s office.
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He spoke on the matter hours after the Ministry of Energy and Petroleum defended the recent spike in fuel prices, attributing it to global oil price fluctuations rather than domestic fiscal measures like the levy securitization.
Energy Cabinet Secretary Opiyo Wandayi clarified that fuel pricing is governed by the Petroleum (Pricing) Regulations, 2022, and is determined by factors such as landed cost, distribution margins, and international oil prices.
Wandayi dismissed speculation that the fuel price hikes are linked to the securitization model, calling such claims “misleading.”
Kiharu MP Ndindi Nyoro sparked debate on the securitization after he claimed the government had used the Road Maintenance Levy as collateral for what he described as an “illegal debt,” further fueling public controversy around the issue.
On Monday, EPRA raised fuel prices, with the price of a litre of super petrol increasing by Sh8.99 nationwide.
In the July-August review, the regulator revised diesel and kerosene prices upwards by Sh8.67 and Sh9.65 per litre, respectively, intensifying public scrutiny over the government’s handling of infrastructure financing and fuel costs.
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