Thursday, 15 May, 2025
Committee reviews new Kenya Roads Board additional funding regulations
Machakos County, Wednesday, May 14, 2025
The Committee on Delegated Legislation has completed its initial review of new regulations intended to guide the allocation of funds to support additional financing for the maintenance, development, and rehabilitation of roads across the country.
Chaired by Hon. Samuel Chepkonga (Ainabkoi), the Committee on Wednesday conducted a pre-publication scrutiny of the Kenya Roads Board (Kenya Roads Board) (Additional Funding) Regulations, 2025.
The session was attended by Roads and Transport Cabinet Secretary Davis Chirchir, Principal Secretary Joseph Mbugua, the Kenya Roads Board CEO, and other senior officials from the Ministry and its agencies, who briefed lawmakers on the proposed regulations.
CS Chirchir told the Committee that the additional funding mechanism aims not only to boost the Roads Fund but also to ensure a sustainable source of financing for road maintenance.
He noted that the State Department needs at least Sh910 billion over the next three years to complete ongoing road projects, while pending payments for already completed works stand at Sh175 billion.
“The current funding is inadequate to meet these demands. There is an urgent need for a sustainable framework to secure additional funds, enhance working capital, and bridge the financing gap,” CS Chirchir explained.
Currently, the Kenya Roads Board relies on proceeds from the Roads Maintenance Levy Fund (RMLF), transit tolls, and other limited sources to manage and maintain more than 200,000 kilometres of the national road network.
During the session, Hon. Chepkonga and Vice Chairperson Hon. Robert Gichimu (Gichugu) led members in raising concerns over specific clauses in the proposed regulations.
One of the provisions allows the Roads Board, with the approval of the Roads and Transport and National Treasury Cabinet Secretaries, to withdraw a portion of funds from the Board's account to secure additional financing when a need is identified.
The withdrawn funds would be deposited into a special account specifically established for this purpose.
According to the draft guidelines, the amount withdrawn should not exceed the allocation set by the Board and must also cover any costs, fees, or insurance incurred in securing the extra funding.
The regulations also propose that the Board will hire an advisor to assist in the securing additional funds, in line with the Public Procurement and Asset Disposal Act.
According to the regulations eligible advisors include the Central Bank of Kenya (CBK), commercial banks licensed by CBK and securities market intermediaries licensed by the Capital Markets Authority.
They also include multilateral lenders, regional and international financial agencies of which Kenya is a member, or any other financial services provider approved by the National Treasury.
Hon. Chepkonga called for clarification on some of the provisions, including the duration the advisor would hold the funds and the applicable fees.
“You have good intentions, but the regulations must clearly specify the interest rates, the party responsible for holding the funds, the duration, and the commission charges,” he said.
Hon. Gichimu also emphasized the need to clearly outline the disbursement process, noting that such clarity would assist agencies in effective planning.
The Committee directed the CS and his team to revise the draft regulations to incorporate the Committee’s proposals and resubmit the document for further consideration