The government, through the Ministry of Transport, has announced the resumption of the construction of over 580 stalled roads across the country, months after suffering a cash crunch.
This follows the Ministry of Transport securing Ksh175 billion in loans from private investors to clear money owed to contractors and complete the stalled road projects.
The ministry explained that the funds were raised through the partial securitisation of revenue from the Road Maintenance Levy Fund (RMLF), which is money obtained from fuel purchases.
Securitisation is a financial mechanism that allows an institution to raise money in the form of bond sales, which would later be offset using proceeds from collected levies.
