Government’s pledge to road contractors

The Government is set to provide financial guarantees to road contractors seeking to secure loans from local commercial banks to ensure public projects are implemented more efficiently, to specifications and on time.

The offer is part of a tripartite agreement between the State, banks and contractors aimed at delivering 10,000km of paved roads in the country in five years.
The cost of the project is estimated at Sh260 billion.

Under the new developments the Government commits to be held liable in the event of default by a road contractor, meaning it will settle all their pending bills in the road sub-sector promptly.

President Uhuru Kenyatta, however, said his government is now committed to honouring its financial obligations to road contractors to ensure contractors pay up their loans in time. The president said the collaboration between the Government, financiers and road contractors is a sure and proven way of delivering good roads to all Kenyans.

“We are committed to seeing this programme through because that is the only way we can develop this country,” he said. He was speaking in Nairobi yesterday during the official launch of the Annuity framework for financing road implementation.