President Uhuru Kenyatta's government is preparing to move to the domestic market to raise billions for the repair of roads occasioned by heavy rains.
The government has been struggling financially, with Treasury focusing on slashing budget from key departments in the recent weeks despite protests.
Since July this year, Uhuru's government has managed to trade in five bonds, the highest in the history of Kenya since independence. Trading in bonds signifies deepening financial crisis.
The debt instruments floated either for budget support or as infrastructure bonds include the Sh50 billion 10-year bond which closed on Tuesday.
Others include the Sh60 billion16-year bond floated last month and a September tap sale.
Treasury acting Cabinet Secretary Ukur Yattani confirmed to members of Parliamentary Roads Committee about the decision to borrow from domestic markets without giving the exact figures.
“We have a plan and moving forward, we intend to come up with a roads bond. There were challenges in the regulatory framework.
"The amendments have been forwarded to the Attorney-General and in the next three days, it will be forwarded to this House for enactment. This will get us a clear framework to finance roads construction,” Yattani said.
The CS said ministries, departments and agencies (MDAs) of government reported pending bills relating to prior years amounting to Sh82.7 billion.
The government's decision comes amid reports that the former minister Henry Rotich and his team cooked books to lie about the country's financial situation.