Nairobi, June 3 -- The Kenya Roads Board (KRB) has trimmed its roads bond target to Sh120 billion from Sh175 billion, revealing a reduced quantum of funding to reimburse bank loans taken to compensate contractors for pending bills.

The National Assembly Committee on Transport has revealed the reduced roads bond target but has not disclosed timelines for the floating of the securitised instrument.

The KRB had been expected to raise Sh175 billion from a bond by the first quarter of 2026, to repay commercial bank loans, which were obtained as a bridge facility to fast-track the clearance of road sector pending bills.

The government has turned to securitisation to clear the significant pile of unpaid funds to contractors amid a fiscal stra...