William Ruto's Govt Cancels KSh 160b Nairobi-Mau Summit Highway Contract, Cites High Toll Fees

• The government signed a contract with the French contractor to build the Nairobi-Mau Summit toll road in 2019
• President William Ruto's administration took over the project, which has since stalled following misunderstandings in the deal
• Kenya National Highways Authority (KeNHA) terminated the contract over the high rates proposed by the French company

President William Ruto's administration has cancelled a contract signed by a French investor to construct the Nairobi-Mau Summit toll road.

The 233-kilometre highway construction, scheduled to begin in 2021, is yet to commence after the government failed to agree with the French company.

Why Ruto cancelled Mau Summit toll road contract

Speaking exclusively to TUKO.co.ke, a source privy to the matter from Transport Cabinet Secretary (CS) Kipchumba Murkomen's office intimated that the state is looking for an investor with fair terms - who will take all risks related to the road traffic volumes.

"The government will be looking for a different investor who will give better terms. The state is for a total PPP agreement…yet the French wanted the government to guarantee traffic flow, meaning if the agreement is to collect KSh 10 million per month and they (the French) fall short of that target, the Kenyan government would be required to top up the difference," said the source.

The source revealed that this was the main reason the government rejected the KSh 160 billion deal signed in 2019.

In December 2023, CS Murkomen confirmed that the government was not on good terms with the contracted firm over who would shoulder the risks related to highway traffic.

"Unfortunately, we have not been able to agree with the company on the transfer of risk in terms of traffic volumes. For instance, the Nairobi Expressway risks are taken care of by the investor, yet in the Rironi-Mau Summit, the investor wants the government to guarantee the difference," said Murkomen.

The CS revealed that there are more than five companies that are willing to take the project and its full risk.

How much will Kenyans pay for Mau-Summit Road?

He noted that based on the currency fluctuations, the construction costs have shot to over KSh 220 billion.

According to Business Daily, the Kenya National Highways Authority (KeNHA) terminated the deal over high toll fees proposed by the French contractor.

If the government carries on with the French contract, taxpayers will be forced to part with KSh 800 for 175km driving a small car and KSh 6,641 of the same distance covered by trucks.

KeNHA proposed toll fees for vehicles covering 175km on the proposed highway ranged between KSh 6 and KSh 24 per kilometre.

What to know about Nairobi-Mau Summit toll road

• In 2022, the National Treasury called on Members of Parliament to approve the National Roads Toll Fund to raise funds for completing the construction of the Nairobi Mau Summit Highway.
• The Kenya National Highways Authority (KeNHA) allocated KSh 192.5 billion to dual the Rironi-Nakuru-Mau Summit Highway in its 2023-27 strategic plan.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke