Kenya Splits Sh200bn Toll Road Deal to Speed Work

Kenya has abruptly split the Nairobi–Nakuru–Mau Summit toll road contract into two to avoid lengthy Chinese approval processes, paving the way for the project to begin.

According to the Kenya National Highways Authority (KeNHA), the runner-up from the bidding process will now handle part of the project, while the initial winner will build the rest.

The original contract had been awarded to China Road and Bridge Corporation (CRBC) in consortium with the National Social Security Fund (NSSF).

However, the Chinese company warned that the Sh200 billion project would undergo “extensive and tedious” scrutiny in Beijing.

The internal review process, required for overseas investments exceeding the $1 billion (Sh130 billion) threshold, could have delayed construction for more than a year.

Under the new plan, CRBC will build 81 kilometres from Nairobi to Gilgil via Naivasha and 58 kilometres from Nairobi to Naivasha through Maai Mahiu.

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Meanwhile, Shandong Hi-Speed Road and Bridge International Engineering (SDRBI), which had lost in the initial bidding, will build the 94 kilometres from Gilgil to Mau Summit.

“With neither of the proponents able to deliver the full corridor within the terms of the PPP Act, the contracting authority, guided by the National Treasury and Economic Planning, initiated evaluation of the feasibility study reports of the alternative split-scope proposals earlier submitted by the proponents,” KeNHA said in a statement.

Kefa Seda, director-general of the Public-Private Partnerships Directorate, emphasised that toll fees will remain consistent across the corridor. 

“The rates must be harmonised. Each developer will individually manage and toll the section they have constructed, but the fees will be the same across the road network,” he said. 

“There will be a framework that will go through Parliament to harmonise that tolling rate, so that even though the implementing companies are different, the tolls will be the same.”

The project, originally valued at Sh170 billion, was first awarded under former President Uhuru Kenyatta to a French consortium led by Vinci SA Highway but was cancelled by President William Ruto’s administration in 2022 due to high costs. 

The move attracted an estimated Sh7.2 billion in termination fees.

Construction is expected to start once KeNHA finalises agreements.

Both CRBC and SDRBI have completed feasibility studies for the split arrangement, which will allow the dual-carriage, four-lane tolled road to proceed without further delays.

Meanwhile, KeNHA has invited private firms to submit competing proposals as the government moves to launch the project this week.

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