UBA Commits $150m to Kenya’s Roads Levy Securitisation Programme

United Bank for Africa (UBA) has pledged $150 million to support Kenya’s Roads Annuity and Levy Securitisation Programme, a strategic infrastructure initiative aimed at accelerating road development and improving connectivity across the country. The commitment was announced as part of UBA’s broader push to strengthen its footprint in East Africa and reinforce its role in financing critical projects that drive regional integration and economic growth.

The securitisation programme, championed by Kenya’s government, is designed to leverage revenues from the Roads Maintenance Levy Fund to raise capital for the construction and rehabilitation of major highways. By committing funds to the project, UBA joins other global and regional financiers in ensuring that Kenya’s ambitious infrastructure agenda can be realised without putting excessive strain on the national budget.

Speaking on the development, UBA Group executives explained that the bank’s decision underscores its belief in Africa’s capacity to build modern infrastructure that facilitates trade, creates jobs, and improves social welfare. They noted that roads remain the backbone of economic activity in most African countries, linking agricultural zones to markets, connecting cities, and opening up landlocked regions to trade opportunities.

Kenyan authorities welcomed the announcement, stating that UBA’s participation will enhance investor confidence and help mobilise additional funding for the programme. Officials highlighted that road expansion and maintenance are central to Kenya’s development agenda, particularly as the country positions itself as a logistics hub for East and Central Africa. By securitising road levy revenues, Kenya aims to create a sustainable financing model that reduces reliance on external borrowing while ensuring long-term infrastructure maintenance.

Analysts have pointed out that UBA’s involvement is significant, not only because of the size of its pledge but also due to the symbolic role it plays in deepening intra-African financial cooperation. With operations in more than 20 African countries, UBA has been expanding its presence in East Africa, and this latest commitment reinforces its status as a pan-African institution committed to driving continental growth.

The deal also comes at a time when Kenya is seeking to address its infrastructure financing gap. Rising debt levels have limited the government’s ability to rely solely on sovereign borrowing for infrastructure projects. As a result, securitisation of revenue streams such as road levies has emerged as an innovative financing mechanism that can attract both domestic and foreign investors without deepening public debt.

For UBA, the transaction provides an opportunity to showcase its expertise in structured financing while aligning with its strategic focus on sustainable development projects. Bank officials emphasised that beyond funding, UBA will also provide technical support to ensure the securitisation framework is efficiently executed and delivers value for all stakeholders.

The investment is also expected to have far-reaching social and economic impacts. Improved roads will reduce travel time, lower transport costs, and boost trade within Kenya and across its borders with Uganda, Tanzania, Rwanda, and South Sudan. Better connectivity will also enhance regional integration under the African Continental Free Trade Area (AfCFTA), opening up new opportunities for businesses and communities.

Stakeholders in the transport and logistics sectors have applauded UBA’s commitment, stressing that private sector participation is vital in bridging Africa’s massive infrastructure financing deficit, estimated at over $100 billion annually. They argue that banks like UBA, which have a strong African footprint, are better positioned to understand local challenges and provide tailor-made solutions compared to external lenders.

In the coming months, Kenya’s Treasury is expected to finalise arrangements with financing partners, including UBA, to operationalise the securitisation plan. Once fully launched, the Roads Levy Securitisation Programme will channel guaranteed funding into priority projects, ensuring timely completion and reducing the chronic delays associated with conventional budget allocations.

By pledging $150 million, UBA has not only reinforced its commitment to Kenya but also sent a strong signal about its role in Africa’s infrastructure transformation. As governments across the continent seek innovative ways to finance development, UBA’s participation in this programme is likely to inspire similar models in other countries, positioning the bank as a leader in infrastructure financing on the continent.