In a bold financial maneuver aimed at sustaining critical infrastructure development, Kenya is leveraging its road maintenance levy to secure a Ksh77 billion (USD600 million) loan, according to Treasury Cabinet Secretary John Mbadi.
The move signals a strategic pivot by the government as it grapples with budget constraints and ballooning debt repayments. By securitising the road maintenance levy—a charge of Ksh18 (USD0.139) per litre of fuel collected at the pump—Kenya aims to tap into cheaper credit facilities.
The decision highlights how the government is increasingly relying on innovative financial tools rather than conventional borrowing to keep its infrastructure ambitions on track. As part of a larger financing plan, officials are also exploring other avenues, including a privately placed bond or a syndicated loan.
While the Ksh77 billion injection provides immediate relief for ongoing projects, it is just one piece of the puzzle. The government is concurrently in talks with China for additional funds to support broader road expansion efforts.
By tying infrastructure funding directly to a consistent domestic revenue stream like the fuel levy, Kenya could be setting a precedent for more sustainable public financing.
