An ambitious road project will see Kenya issue a $1.5 Billion first bond for the sector to carter for infrastructure costs.

It is expected that the bond will be issued by June and will benefit other sectors of the economy.

Infrastructure Principal Secretary Paul Maringa announced that the government is getting ready to issue its first-ever road bond seeking KSh150 billion ($1.5 billion),

Paul Maringa told the Parliament that the bond will be issued by June this year. Part of the resources will go to Kenya Roads Board (KRB) to settle pending bills covering the period up to June 30. The remaining will be used to fund road projects across the country, from July 1 to September 30, and a second bond will then be issued.

According to the official, the road sector needs $6.4 billion to settle pending commitments. “It will take over 10 years to pay off the current outstanding commitments, assuming no new projects are brought on board,” he said.