Monday, December 23, 2024

Government cancels construction of Nairobi-Nakuru-Mau Summit expressway

Government cancels construction of Nairobi-Nakuru-Mau Summit expressway

The government has canceled the planned construction of the Nairobi-Nakuru-Mau Summit Expressway.

A local newspaper quoted a source at the Kenya National Highways Authority (KenHA) saying that the contract that had been awarded for the construction of the multi-billion project had been formally canceled.

The cancellation follows a fallout between the current government and the financiers from France who had been tipped to construct the highway by the government of former President Uhuru Kenyatta.

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The French consortium made up of Vinci Highways SAS, Meridian Infrastructure Africa Fund, and Vinci Concessions SAS was set to expand the main highway from Nairobi to western Kenya into a four-lane dual carriageway through a public-private partnership (PPP) model.

Initially, the highway was meant to be used on a toll-basis. Users of the Mau Summit highway were to pay Sh. 6 per kilometre. This would translate to Sh. 1,398 for the entire Rironi-Nakuru-Mau Summit highway.

Under this arrangement, the French consortium operating as Rift Valley Highway Limited was expected to recover its investment and profits in around 30 years.

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Among the reasons that the government has cited for the tender cancellation include the toll fees that had been proposed for the road.

“The was actually going to be the biggest infrastructure transaction in Africa. Unfortunately, that transaction was going to cost the user Sh. 800 to drive 175 kilo- metres in a small car and close to Sh. 6,641 for one truck to go 175 kilometres,” said Christopher Kirigua, the exiting director-general for The Public Private Partnerships (PPP) at the National Treasury.

The project had attracted mega financiers outside of the French consortium. For example, in February 2022, the World Bank through its financing arm International Finance Corporation joined the battle to fund the construction of the expressway.

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Through the IFC, the World Bank had become the latest entry to make an expression of interest in the project. Following this expression, the IFC had published the project’s environmental and social impact assessment (ESIA) documents for public review before it commits to funding the road.

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Weeks before this pitch, the African Development Bank (AfDB) had also expressed interest in funding the mega project.

Ironically, in late April 2024, President William Ruto had announced that the commencement of the construction of the road was on course.

“We are well on course to dualing the Nairobi-Nakuru Highway. Before the end of this year, we will begin the dualing of the road between Nairobi and Nakuru all the way to Eldoret and possibly to Malaba,” he had said

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