The United Bank for Africa (UBA) has committed USD 150 million (KSh 20.5 billion) to the country’s Roads Levy Securitisation Program to boost Kenya’s infrastructure development agenda. The investment cements UBA as one of the largest financiers of the government’s innovative model, which seeks to clear mounting contractor arrears and revive hundreds of stalled projects nationwide.
The securitisation program, championed by the Ministry of Roads and Transport, involves leveraging part of the Road Maintenance Levy Fund (RMLF), collected through the KSh25 per litre fuel levy. Specifically, KSh7 out of every KSh25 collected is being securitised, enabling the Kenya Roads Board (KRB) to raise KSh175 billion upfront from investors. These funds will be used to pay over KSh175 billion owed to contractors and restart more than 580 road projects inherited from previous administrations.
UBA Group Managing Director/CEO Dr. Oliver Alawuba said the commitment reflects the bank’s faith in Kenya’s economy and the role of infrastructure in driving growth. “Our USD 150 million commitment to the Roads Levy Securitisation Program reflects our confidence in Kenya’s future and our belief in infrastructure as a foundation for trade, competitiveness, and inclusive prosperity,” he stated.
United Bank for Africa(UBA) Injects $150M Boost for Kenya’s Infrastructure Drive
UBA Kenya CEO Mary Mulili added: “We are not just a financial institution, but a trusted partner to government, businesses, and communities. We are investing in Kenya’s growth story – in better roads for farmers, reliable transport for SMEs, efficiency for manufacturers, and prosperity for every Kenyan.”
Roads and Transport Cabinet Secretary Davis Chirchir defended the model, stressing its legality and transparency. “This decision was made transparently, with full adherence to the law, and in line with best financial practices. It does not amount to new borrowing but simply the securitisation of rights by the KRB to a Special Purpose Vehicle (SPV), which raises funds upfront to be repaid from future levy collections,” Chirchir explained.
Although some have linked the program to higher fuel prices, officials argue global oil price fluctuations remain the key driver of pump price hikes. Meanwhile, the Cabinet has approved raising contractor payouts from 40% to 80% of verified claims, backed by the securitised funds.
Treasury Principal Secretary Chris Kiptoo underscored the model’s benefits, saying: “The proceeds of this securitisation shall be applied to settle maturing obligations of the road maintenance agencies as they fall due.”
With UBA’s KSh20.5 billion investment, Kenya moves a step closer to clearing its road sector backlog, restoring contractor confidence, and securing the infrastructure backbone essential for sustained economic growth.
