The government has announced that it will settle all outstanding payments owed to road contractors by this Friday, February 6, covering works contracted up to December 2025.
Speaking on Wednesday during the issuance of United Democratic Alliance (UDA) nomination forms at State House, President William Ruto said the move aims to unlock stalled projects and ensure that contractors can resume work without financial strain.
“This Friday, the government will pay all pending road bills dating back to December 2025,” Ruto said.
He noted that when his administration took office, pending road bills were approaching Sh300 billion, which they have cleared up.
“We have cleared them, and I am telling the people of Kenya and every contractor in the Republic of Kenya who has a bill and certificate up to December 2025, we will pay all of them on Friday,” he added.
He emphasised that clearing these arrears is critical for completing the 6,000 kilometres of roads contracted for the next year and for initiating work on an additional 28,000 kilometres of road infrastructure.
“We want to complete the 6,000 kilometres of roads we contracted by next year, and then we will work on another 28,000 kilometres. Many people will tell me that they want roads. We go everywhere, and citizens say roads are impassable; we have dusty roads, we have muddy roads. So we need the first 28,000 kilometres,” he said.
“We also want to build highways. We have tarmacked roads, but even they have heavy traffic. That is why we have said we are going to build dual carriageways, 2,500 kilometres, to ensure that Kenyans can travel to work, home or elsewhere without congestion or difficulty.”
Contractors have previously cited delayed payments as a major challenge, often forcing them to halt projects, lay off workers, or borrow funds to sustain operations.
In response, the National Treasury has been directed to clear Sh255 billion in pending bills immediately, marking a key step toward addressing long-standing arrears that have affected the private sector for nearly two decades.
National Treasury Principal Secretary Chris Kiptoo has noted that this is part of a broader Sh606 billion accumulated in pending bills, which underwent a rigorous verification process conducted by the Pending Bills Verification Committee.
He spoke during the 2026 Legislative Retreat in Naivasha.
He noted that Sh80 billion in the road sector has already been cleared, while the remaining Sh175 billion will be settled progressively in the coming months. The government has assured suppliers that all verified bills will be paid within the next two fiscal years, pending Cabinet approval for the balance.
Kiptoo explained that delays in clearing pending bills were largely due to fiscal deficits, as the government contended with shrinking revenues and reduced tax collections.
“The approval of Sh255 billion is not just a financial intervention but also a confidence-building measure to restore trust between the government and the private sector,” he said.
Out of the projected Sh4.6 trillion budget for the 2026/2027 financial year, Sh1.8 trillion. representing 48 per cent of collected revenues, is earmarked for interest payments on loans, leaving limited room for development expenditure.
