Kenya Delays Plan to Sell Road Bonds Backed by Fuel Levy

  • Government planned to raise 30 billion shillings by end-June
  • Lawmakers want 75 billion shillings raised to pay contractors

Budgetary allocations show 192 billion shillings is earmarked for road transport in the 2021-22 fiscal year.

Photographer: Simon Maina/AFP/Getty Images

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Kenya has postponed plans to raise funds for road building through selling bonds backed by a fuel levy, citing the need to complete ongoing works before starting new projects.

The government planned to raise 30 billion shillings ($274 million) in the fiscal year ending June, by issuing debt that would be repaid through a road maintenance tax on every liter of gasoline and diesel. The securities may still be issued in the next fiscal year, Rashid Mohamed, director-general at Kenya Roads Board, said by phone.