UBA injects Sh16.4 billion into Kenya’s road levy financing plan
The programme, initiated by the Kenya Roads Board (KRB), is designed to mobilise Sh175 billion by securitising a portion of the Road Maintenance Levy Fund.
United Bank for Africa (UBA) has committed Sh16.4 billion to Kenya’s Road Maintenance Levy securitisation programme, giving a strong boost to the government’s plan to raise funds for roads through future revenue streams.
The programme, initiated by the Kenya Roads Board (KRB), is designed to mobilise Sh175 billion by securitising a portion of the Road Maintenance Levy Fund.
The model allows the government to package predictable income and channel it to investors through a Special Purpose Vehicle (SPV), unlocking funds for faster development of critical road infrastructure.
According to KRB, the scheme will strengthen cash flow for contractors, accelerate maintenance works, and reduce financial strain on the government while ensuring timely completion of projects.
UBA Kenya, a subsidiary of United Bank for Africa Group, has become one of the largest financiers of the initiative with its Sh16.4 billion injection.
“Our $150 million commitment to the Roads Levy Securitisation Programme reflects our confidence in Kenya’s future and our belief in infrastructure as a foundation for trade, competitiveness and inclusive prosperity. This transaction is a demonstration of UBA’s ability to be a partner for infrastructure projects,” said UBA Group managing director Oliver Alawuba.
The facility places the bank among key domestic and international lenders backing the scheme, which is seen as vital for expanding the country’s transport network and improving connectivity.
UBA Kenya chief executive Mary Mulili noted that the institution is keen to position itself as a leading player in infrastructure and inclusive finance. “The strategy is to continue positioning UBA as the go-to bank for infrastructure, trade and inclusive finance,” she said.
The Ministry of Roads and Transport welcomed the move, saying it highlights investor trust in Kenya’s infrastructure programme and underscores the role of Pan-African banks in mobilising capital for development.
KRB has become the first public agency in the country to adopt securitisation by allocating Sh12 out of every Sh25 collected per litre of fuel over the next decade to support the fund.
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