HomeKenya NewsGovernment Owes Road Contractors and Landowners Staggering Sh145 Billion

Government Owes Road Contractors and Landowners Staggering Sh145 Billion

The staggering amount of Sh145 billion in certified pending bills is owed by the government to road contractors and landowners, according to a recent declaration by the government. In a statement to MPs on Wednesday, the Cabinet Secretary for Roads and Transport, Kipchumba Murkomen, revealed that local contractors are owed Sh50 billion, while foreign firms are owed Sh60 billion.

The remaining Sh35 billion is owed to landowners whose properties were acquired for road construction.

Murkomen informed the House that the Ministry of Roads has over 800 ongoing projects, with a total outstanding cost of Sh763 billion as of February 28, 2023.

He stated that the outstanding pending bill amounts to Sh145 billion for certified works not yet paid.

The CS also noted that most road projects are either experiencing slow implementation or have come to a complete stop due to the government’s inability to provide resources to pay contractors.

He highlighted that many road projects have been stalled for over five years, and nine have been abandoned for more than a decade.

However, Murkomen expressed gratitude to the Roads Annuity Fund, which has agreed to release Sh12 billion to pay some contractors.

He also thanked the contractors and banks that agreed to allow the government to seek funds, which prevented the auctioning of some contractors. Despite the unfortunate situation, the CS attributed it to being inherited.

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