The government has proposed Sh220.4 billion for the development of roads as part of a wider infrastructure plan aimed at strengthening connectivity, lowering transport costs and supporting economic activity across the country.
Speaking before Parliament on Thursday, Treasury Cabinet Secretary John Mbadi said infrastructure remains central to economic growth by linking regions, supporting energy and water systems, and enabling production and trade through lower costs and expanded markets.
“Infrastructure as a platform of economic transformation provides connectivity, energy, and water resources needed to power productive activities and sustain human settlement by reducing transaction costs and opening markets. Infrastructure is the backbone of economic transformation. It provides connectivity, energy and water resources needed to power productive activities and sustain human settlements,” he said.
“By reducing transaction costs and opening markets, infrastructure investments deliver long-term value.”
According to Mbadi, Sh44.3 billion will support the construction of roads and bridges, Sh58.0 billion for the rehabilitation of roads, and Sh118.1 billion for road maintenance.
“This balanced mix supports connectivity, freight efficiency and long- term road preservation,” he said.
To expand transport systems beyond roads, Mbadi also announced funding for rail, ferry and urban mobility projects aimed at improving the movement of people and goods across the country.
To expand railway transport, the Treasury has proposed Sh38.4 billion for railway projects. Additionally, Sh400 million has been proposed for the Kenya Ferry Ramp in Likoni, Mombasa, Sh1.0 billion for the development of the Public Ferry Landing Ramps in Lake Victoria, including Mbita and Sena in Suba North and West sub-counties of Homa Bay County, Sh150 million for the acquisition of Public Ferry in Lake Victoria and Sh582 million for the Nairobi Bus Rapid Transport Project, which is a critical public transport investments that will reduce congestion and enhance mobility.
On energy, the Treasury has also proposed Sh30.9 billion to support the expansion of electricity access and strengthen power supply systems across the country.
Sh7.5 billion has been earmarked for the National Grid System, Sh20.2 billion for Rural Electrification and Sh3.2 billion for alternative energy technologies.
“These allocations expand access, lower costs, and promote sustainable growth,” Mbadi said.
He further noted that continued government investment in infrastructure since 2022 has improved connectivity, boosted manufacturing, supported trade and expanded access to essential services.
He outlined key achievements in the sector, including expansion of the road network, growth in electricity generation capacity, and progress in industrial development across counties.
The government said more than 2,669 kilometres of roads have been constructed and over 132,000 kilometres maintained across the country. In the energy sector, installed electricity generation capacity has risen to 3,272 MW as of April 2026, with additional supply expected from the 35 MW Globeleq Power Plant.
To improve reliability, Mbadi said the government has modernised substations, strengthened the national grid, reduced system losses and expanded regional power links. During the period, 75.45 km of transmission lines and related substations were built, while 200 km of lines were energised, including Lessos–Kabarnet, Kitui–Wote and Sondu–Homa Bay lines. A further 330 km of distribution lines and seven substations were completed.
Electricity access also expanded, with connected customers rising from 8.9 million to over 10.2 million.
In industrial development, 10 County Aggregation and Industrial Parks have been constructed over the last three years to support value addition and create jobs across counties.
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