The Cabinet has announced the full settlement of pending bills for certified works and accrued interest in the Ministry of Roads.
In a dispatch issued after a Cabinet meeting on Monday, the government said all outstanding obligations up to December 31, 2024, had been cleared, with payments totaling Sh123 billion.
The move is expected to restore contractor confidence and accelerate infrastructure delivery nationwide.
The settlement covers certified works as well as accrued interest owed to contractors who had experienced delays in payments.
“The Cabinet noted that all pending bills for certified works and accrued interest in the Ministry of Roads, up to 31 December 2024, have been fully settled, with the ministry having paid KSh123 billion, restoring contractor confidence and enabling works to resume across the country,” the statement said.
According to the Cabinet, the payment programme has had an immediate impact on the roads sector, unlocking and accelerating hundreds of projects that had either stalled or slowed due to cash flow constraints.
Since April 2025, the Cabinet said a total of 875 road contracts have been unlocked or fast-tracked following the clearance of the arrears.
The Cabinet said the move was aimed at stabilising the construction sector, safeguarding jobs, and ensuring continuity of critical infrastructure projects.
Contractors had repeatedly raised concerns over delayed payments, warning that prolonged arrears were affecting project timelines and increasing costs.
The Cabinet said the settlement of the bills would improve liquidity among contractors and suppliers, allowing them to remobilise equipment, pay workers, and resume works across different regions of the country.
It also signalled a commitment by the government to fiscal discipline and timely settlement of obligations to the private sector.
The Ministry of Roads is now expected to focus on supervising the accelerated implementation of the revived projects to ensure value for money and timely completion, as the government seeks to improve road connectivity and support economic growth.
