Transport Cabinet Secretary Kipchumba Murkomen has come out to explain why the government has increased the cost of using the Nairobi Expressway.

The CS attributed the hiked Expressway rates to the weakening of the shilling, arguing that the Expressway rates were last adjusted during former President Uhuru Kenyatta’s government when the shilling was trading at 113 to the US dollar. Since the new government came into power, the shilling has since depreciated to historical lows of 157 to the US dollar.

Here is what CS Murkomen said.

The increase is not 50%. If you take the maximum increase which is from 360 to 500 you will get a difference of 140 Shillings. if you divide Kshs 140 by Kshs 360 and multiply by 100 you will get 38.89%.

Now the last adjustment was done when one dollar was equal to Kshs 113.14. Now the dollar is Ksh 157 and using the same method I.e 157 minus 113 which is equal to 44. Divide 44 by 113 and multiply by 100 and you will get 38.9 %. So the increase is proportional.

The adjustment was done based on the Project Agreement taking into account the depreciation of the Kenya Shilling to the United States dollar since the time of gazettement of the Toll Rates in April 2022.

The formulae for computing the new rates is already embedded in the agreement taking into account the loan facility by the investor which was borrowed using USD ( as a banker you will understand more)

The Cabinet Secretary and the government of Kenya have no discretion but to follow the agreement as established in 2021.

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The good thing about express way is first that the government of Kenya did not give traffic volume guarantee otherwise the taxpayer would now be paying a lot from the interest accrued and inflation plus the difference unmet by less traffic flow. Second, the consumer has alternative route which is not tolled.