The government has pledged to settle all outstanding road contractor bills by Friday, February 6, covering work completed up to December 2025, in a move expected to revive projects stalled for years.
President William Ruto made the announcement on Wednesday while issuing United Democratic Alliance nomination forms at State House. He said the payment plan is designed to relieve contractors from financial strain and accelerate the completion of ongoing road projects.
“This Friday, the government will pay all pending road bills dating back to December 2025,” Ruto stated.
He recalled that when his administration assumed office, pending road payments were approaching Sh300 billion, a backlog that has now been cleared.
“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.
The President highlighted that clearing these arrears is critical to completing the 6,000 kilometres of contracted roads next year, as well as opening up an additional 28,000 kilometres of new road projects.
“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,” Ruto said.
He further said the government plans to build dual carriageways to ease congestion on existing tarmacked roads, targeting 2,500 kilometres to improve travel efficiency across the country.
“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,” the President added.
Contractors have long complained that delayed payments disrupt projects, force layoffs, and increase borrowing costs. To address this, the National Treasury has been instructed to immediately release Sh255 billion to settle verified pending bills, marking a major step toward ending long-standing arrears that have affected the sector for nearly two decades.
Treasury Principal Secretary Chris Kiptoo, speaking at the 2026 Legislative Retreat in Naivasha, explained that the Sh255 billion is part of Sh606 billion in verified pending bills reviewed by the Pending Bills Verification Committee.
He said Sh80 billion in road payments has already been disbursed, with the remaining Sh175 billion to be released gradually over the coming months. Kiptoo added that all verified claims will be settled within the next two fiscal years, subject to Cabinet approval for the remaining balance.
He cited fiscal pressures, declining revenues, and lower tax collections as reasons for delays in clearing pending bills, and stressed that the Sh255 billion injection is meant to rebuild trust between the government and the private sector.
“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,” Kiptoo said.
The government faces tight budget constraints, with Sh1.8 trillion of the projected Sh4.6 trillion 2026/2027 budget set aside for interest payments on loans, leaving limited room for development spending. From the Sh2.8 trillion allocated to ministries, education will receive Sh767 billion, followed by energy, infrastructure, and ICT with Sh595 billion, and national security with Sh300 billion.
