NAIROBI, Kenya, Sept 11 – United Bank for Africa (UBA) has committed $150 million (Sh20.5 billion) to Kenya’s Roads Levy Securitisation Programme, providing a major boost to the Sh175 billion infrastructure plan aimed at reviving more than 580 stalled road projects.
The programme, spearheaded by the Kenya Roads Board (KRB), securitises part of the Road Maintenance Levy Fund (RMLF) to attract private capital without adding to national debt.
Under the plan, Sh7 of every Sh25 collected per litre of fuel will be channelled into a Special Purpose Vehicle (SPV), raising funds upfront to clear arrears and fast-track road construction.
UBA Group Managing Director and CEO Oliver Alawuba said the bank’s commitment reflects confidence in Kenya’s economy and the importance of collaborative infrastructure financing.
“The infrastructure finance gap for Africa is huge, and it is not one that a single government can undertake to complete. We need private and public sector working together for infrastructure development in Africa, and that will unlock many opportunities,” he said.
UBA Kenya CEO Mary Mwangi added that the transaction ranks among Kenya’s largest public-private financing deals, with expected benefits across trade, agriculture, and SMEs. She said the programme would improve market access for farmers while creating jobs.
In July, Transport Cabinet Secretary Davis Chirchir emphasised that the securitisation model is not a loan or a new tax, but a smarter use of existing collections.
He said the structure shields taxpayers from higher fuel prices and government from additional debt while stimulating growth in the construction sector.
UBA also announced plans to channel part of its $6 billion Africa-wide SME fund into Kenya, targeting youth and women-led enterprises under the African Continental Free Trade Area (AfCFTA) framework.
