If Kenya cancelled the Nairobi Expressway deal prematurely, taxpayers would be forced to pay its Chinese Sh103 billion.
This has been revealed by the National Treasury in disclosures that have lifted the lid on the level of leeway that the Kenya government was forced to give to have the road constructed. The Nairobi Expressway was built on a public-private-partnership deal that would last for about three decades.
It is currently operated by Moja Expressway which is a subsidiary of the China Road and Bridge Construction (CRBC).
The CRBC is one of the major construction companies that will build the Rironi-Mau Summit Expressway, which will be Kenya’s second toll road. The firm’s other major project in Kenya has been the Sh474 billion Mombasa-Naivasha standard gauge rail (SGR).
“Assuming the worst-case scenario of termination of PPP projects due to contracting authority default, the maximum termination sums as at financing close for executed projects have been reported as the contingent liability,” the National Treasury said in its Annual Public Debt Report for the financial year 2024/25.
“As of the end of June 2025… total estimated exposure related to termination sum payments amounts to Sh203 billion. Assuming 5.0 percent probability of termination by the contracting authorities, contingent liability associated with PPP projects arising from project termination payments is Sh10.19 billion as of end of June 2025.”
The termination charge that would be slapped on Nairobi Expressway accounts for more than half of the estimated Sh203 billion that is quoted by the National Treasury as the PPP cancellation fee for eleven infrastructure projects.
READ MORE: The problems with mega Rironi-Mau Summit A8 toll highway deal
The Expressway is made up of around 27.1 kilometres covering the distance from Westlands in Nairobi to Mlolongo. It was constructed at a fee of around Sh70.78 billion. Initially, the road was estimated to cost some Sh65.2 billion. The least amount paid to use the road if Sh170 while the highest amount is Sh500.
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