State-owned National Social Security Fund (NSSF) will invest Sh9.59 billion in the 236-kilometre Nairobi-Rironi toll highway, marking its first direct stake in a public road project.
The pension fund has teamed up with China Road and Bridge Corporation under a public-private partnership valued at Sh170 billion, with an ownership structure of 40 percent for NSSF and 60 percent for the Chinese contractor. Their joint mandate covers the 81-kilometre Rironi–Gilgil stretch and the 58-kilometre Rironi-Maai Mahiu-Naivasha section, known as A8 South.
The consortium plans to inject $743 million, about Sh95.86 billion, into its portion of the highway, expecting annual returns of roughly 13 percent in dollar terms through toll collections. Financing will comprise 25 percent equity, amounting to $185.75 million, and 75 percent debt of $557.25 million. NSSF will provide 40 percent of the equity, while CRBC will secure the debt financing at concessional rates.
NSSF’s general manager for finance and investments, Ronald Nyamosi, said the fund is targeting returns of between 13 and 15 percent in dollars over the 28-year concession period, which could translate to about 18 percent when converted to shillings.
Initially, NSSF had projected an equity commitment of between Sh20 billion and Sh25 billion when its consortium was awarded the entire road. However, the project was later divided, reducing the fund’s outlay.
The government reintroduced Shandong Hi-Speed Road and Bridge International Engineering to build the 94-kilometre Gilgil-Mau Summit segment, including a viaduct through Nakuru City. Splitting the contract helped avoid Beijing’s requirement for central approval on overseas projects exceeding $1 billion, which could have delayed the highway by more than a year.
President William Ruto has prioritised the project ahead of the 2027 General Election, viewing it as critical infrastructure for easing traffic congestion along the main corridor linking Nairobi to western Kenya, Uganda, Rwanda and the Democratic Republic of Congo. The project was officially launched on November 28, 2025.
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An estimated 40,000 vehicles use the Rironi-Mau Summit route daily and are expected to become toll-paying users once the road is operational.
The project replaces an earlier 1.3 billion euro contract awarded under former President Uhuru Kenyatta to a consortium led by Vinci SA, which was later cancelled and retendered.
Under the revised arrangement, the new contracts do not include minimum revenue guarantees, meaning the government will not compensate operators if traffic volumes fall short. Instead, a revenue cap model has been adopted, requiring operators to share excess earnings with the State once collections exceed agreed thresholds. This contrasts with the demand-risk model used for the Nairobi Expressway, where CRBC absorbs traffic shortfalls but retains surplus revenue. The Expressway has yet to turn a profit, posting a Sh1.84 billion net loss in the six months to December 2024.
