The latest on the RMLF securitisation. The National Treasury and the Kenya Roads Board (KRB) have executed long-term legal and trust agreements to formalize a KES 156.97 billion Asset-Backed Securities (ABS) Programme, permanently encumbering future fuel levy receipts to retire short-term contractor debt. According to transaction documents finalized between September 14 and October 1, 2026, the Special Purpose Vehicle, OAK SPV Assetco Limited, entered into an Onshore Trust Deed with NCBA Bank Kenya PLC (as Note Trustee) and a formal Placing Agreement with a banking syndicate led by Absa Bank Kenya, KCB Investment Bank, and the Eastern and Southern African Trade and Development Bank (TDB). These newly executed documents mark the formal long-term "take-out" refinancing phase. Under the agreement: The Instrument: Up to KES 156.96 billion in Asset-Backed Notes are being placed with institutional subscribers (pension funds, commercial banks, and regional development lenders). The Yield Benchmark: Key intercreditor terms anchor the internal yield on the underlying asset purchase at a fixed 12.72% per annum payable to the Kenya Roads Board on its Originator Note. The Proceeds: Cash raised from the long-term notes will be used to pay off the initial bridge facilities provided by commercial lenders. Mortgaging the Fuel Levy: To guarantee repayment to noteholders under NCBA’s trust deed, a dedicated slice of the Road Maintenance Levy Fund—scaling up to KES 12 per litre—is legally ring-fenced and continuously routed into escrow accounts before reaching state road agencies. Maintenance Budget Squeeze: While the structure resolves immediate contractor litigation and clears historical balance-sheet arrears, it locks in a massive fixed debt-service obligation over the next decade, sharply curtailing unencumbered cash available to agencies like KeNHA, KeRRA, and KURA for routine road maintenance. Private Placement vs. Public Oversight: By relying on off-balance-sheet SPV issuing structures and target placements restricted to "limited or qualified investors," the multi-billion-shilling transaction bypasses conventional parliamentary debt caps, raising ongoing questions regarding long-term fiscal transparency and public participation.