President William Ruto‘s administration has decided to terminate a contract signed with a French investor for the construction of the Nairobi-Mau Summit toll road, marking a significant development in Kenya’s infrastructure landscape.
The ambitious 233-kilometer highway project, originally slated to commence in 2021, has yet to see the light of day as negotiations between the government and the French company faltered.
A source within the Transport Cabinet Secretary (CS) Kipchumba Murkomen‘s office, speaking exclusively to media, shed light on the government’s perspective.
The state is now actively seeking an investor who is willing to offer more equitable terms, particularly one ready to assume full responsibility for the risks associated with road traffic volumes.
This move underscores the government’s preference for a comprehensive Public-Private Partnership (PPP) agreement, contrasting with the French company’s insistence on guarantees regarding traffic flow.
If the projected traffic revenues fell short, the French company sought assurance that the Kenyan government would make up the difference a condition deemed unacceptable by the government.
This fundamental disagreement over risk allocation was the primary reason behind the government’s rejection of the initial KSh 160 billion deal signed in 2019.
In December 2023, CS Murkomen reiterated the government’s stance, citing ongoing discord with the contracted firm regarding risk-sharing in relation to highway traffic.
While investors for projects such as the Nairobi Expressway typically bear the brunt of traffic-related risks, the French contractor for the Rironi-Mau Summit project insisted on government guarantees for any shortfalls a proposition deemed untenable by the government.
Despite the setback, CS Murkomen revealed that there is no shortage of interested parties, with more than five companies expressing readiness to undertake the project along with its associated risks.
However, he cautioned that construction costs have surged to over KSh 220 billion due to currency fluctuations, further complicating matters.
Meanwhile, reports have emerged that the Kenya National Highways Authority (KeNHA) terminated the deal due to exorbitant toll fees proposed by the French contractor.
Should the government proceed with the French contract, taxpayers would be burdened with steep toll fees, ranging from KSh 800 for a 175km journey in a small car to a staggering KSh 6,641 for trucks covering the same distance.
In contrast, KeNHA proposed toll fees ranging from KSh 6 to KSh 24 per kilometer for vehicles traversing 175km on the proposed highway—a far more reasonable proposition.
In light of these developments, the cancellation of the contract represents a significant recalibration of Kenya’s infrastructure strategy, signaling a renewed commitment to transparency, equity, and fiscal responsibility in major infrastructure projects.
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