The Kenyan government has cancelled a Ksh190 billion (€1.3 billion) deal with a French company that had been hired to construct the Nairobi-Nakuru dual carriageway.
Sources privy to the information revealed that President William Ruto’s administration ditched the multi-billion-shilling highway construction deal and instead awarded the project to a Chinese contractor.
The agreement for the construction of the 140-kilometre road was signed by former President Uhuru Kenyatta in 2020 during his visit to Paris, France.
According to sources, Kenya's decision to end the contract followed the government’s decision to revisit the contract after concerns from the Kenya National Highways Authority (KeNHA) officials.
“KeNHA requested a restructuring of the contract, but the proposal was considered unbankable, thus creating a stalemate,” a KeNHA official told Reuters.
The concerns prompted KeNHA to issue a notice of termination of the deal, ending the Public-Private Partnership (PPP), which could have seen the government shoulder more expenses in the construction of the highway.
Following the cancellation of the deal with the French company, the government began talks with a Chinese company to lead the construction of the highway, a project aimed at easing traffic congestion along the Nairobi-Nakuru road.
The latest development comes four months after President Ruto announced the dualling of the Nairobi-Nakuru Highway. Speaking during a church service in Uasin Gishu on December 22, 2024, the president said the construction of he dual carriageway would begin this year.
Ruto noted that the dualling of the highway would be done by a private contractor under the PPP programme, adding that the highway would be constructed in two phases.
According to the Head of State, the first phase would involve the construction of the highway from Nairobi to Nakuru, while the second phase would extend from Nakuru to Malaba.
“The commitment I want to give you is that next year, we will begin the construction of the dual carriageway from Nairobi to Nakuru first, and then from Nakuru to Malaba,” Ruto said.
While calling on Kenyans to exercise patience, the President noted that the same would be done to other unfinished roads across the country.
