Kenya will pay KSh 6.2 billion to a consortium of French contractors following the cancellation of the Nairobi-Nakuru-Mau Summit toll road contract.
The original €1.3 billion (about KSh 190 billion) deal, signed in Paris in 2020 by former President Uhuru Kenyatta and involving Vinci Highways, Vinci Concessions, and Meridiam Infrastructure Africa Fund, aimed to upgrade the 140 km road to a dual carriageway under a 30-year concession, with the consortium recovering costs through tolls.
The government terminated the contract due to concerns over high toll fees-estimated between $6 and $50 per trip-and the financial risk placed on the state if traffic volumes were lower than projected.
Attempts to renegotiate the contract failed as the revised terms made the project unviable for the consortium. The Kenya National Highways Authority (KeNHA) cited excessive government exposure to downside risk as a key reason for cancellation.
Following termination, Kenya is onboarding a Chinese contractor to take over the project under revised public-private partnership terms that aim to reduce government financial risk while ensuring the highway upgrade proceeds.
President William Ruto, who opposes tolling the highway due to the burden on citizens, has prioritized starting construction in 2025 to boost economic activity, especially around the Naivasha Special Economic Zone.
