Legal Assessment for Project Oak Infrastructure Bond Tender

• Country: Kenya
• Summary: Legal Assessment for Project Oak Infrastructure Bond - Kenyan law KES bond
• KET Ref No: 131744844
• Deadline: 16 Dec 2025
• Financier: World Bank (WB)
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
• Document Ref. No.: 0002020001
• Purchaser's Detail:
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• Description:
• From 2010 and up until the onset ofthe COVID-19 pandemic, Kenya seized opportunities presented by the globallow-interest environment to invest in its infrastructure[1]. Tofinance these investments Kenya drew on public and foreign savings resulting inwider fiscal and current account deficits. The construction and public sectordriven boom, however, generated limited growth and jobs dividends. At the sametime, because of the accumulation of pending bills and arrears by thegovernment, domestic firms and suppliers experienced cash flow issuescontributing to rising nonperforming loans (NPLs) in the banking sector, whichreached 17.2 percent by February 2025.At the same time, the need torespond to development needs and unlock private capital at scale subsists, andwith improved local interest rates and a more stable foreign exchange rate, theopportunity for capital market development and leveraging securitizationas a tool to mobilize private capital and accelerate development efforts in aresponsible and sustainable manner is a logical choice. Kenya Roads Board (KRB) a stateagency incorporated under the Kenya Roads Board Act, is tasked to fund, overseeand coordinate road maintenance, rehabilitation and development. KRB has significant outstanding arrears andunpaid bills to the private sector companies operating in the roads and constructionsector. These pending obligations have led to widespread suspension ofinfrastructure works, affecting livelihoods, road users, and resulting in lossof jobs due to the inability of the companies to retain their workers andsignificant delinquency on the part of these private companies to the bankingsector[2].These factors triggered the need for an innovative approach to raise thenecessary financing to bridge the financing gap and reduce the outstandingarrears to private companies. The KRB is funded by a roadmaintenance levy that is collected from oil importers by the Kenya RevenueAuthority pursuant to the Roads Maintenance Levy Fund Act (RMLF...
• Documents:

 Tender Notice