Hiiraan Online Today from Hiiraan Online: Somali Music Google Plus advertisements Kenya secures $600 million in short-term financing for roads FacebookFacebook messengerTwitterWhatsAppLinkedInTelegramEmail By Duncan Miriri Thursday April 17, 2025 Kids play soccer in the Kibera slums in Nairobi, Kenya, March 7, 2022. REUTERS/Baz Ratner/File Photo Purchase Licensing Rights Kenya has received $600 million in short-term financing from commercial banks, backed by the country's fuel levy collections from motorists, the finance minister said on Wednesday, to fund construction of roads in the face of budgetary constraints. The East African nation has been struggling to fund development projects due to slower growth in revenue from taxes, high debt repayments and an increase in expenditure demands including from its 47 local authorities. President William Ruto's government, which took office in September 2022, has been trying to secure funds to finish road construction across the country. The latest initiative involves the securitisation of the road maintenance levy, which is set at 18.00 shillings ($0.1392) per litre of fuel at the pump, allowing the Kenya Roads Board to access the bank financing at cheaper rates. "They have received a funding of about $600 million," Finance Minister John Mbadi told Reuters. Kenya is still seeking a bigger transaction that could take the form of a privately placed bond or a syndicated loan, for a maximum of $1.5 billion, he said. The short-term funding, pending the bigger financial deal, will be used to pay off contractors for urgent road works. The cash goes straight to the roads board, which conducts maintenance of roads on behalf of the government. Ruto's government has also turned to China to secure more funds for a major highway expansion project. ($1 = 129.3000 Kenyan shillings) Reporting by Duncan Miriri; editing by Barbara Lewis Opinion| Privacy Policy|Sports|Somali Music|Somali Map All Rights Reserved Copyright. © 1999-2025, www.hiiraan.com