Kenya’s treasury has decided to pull the plug on the $36 billion Nairobi-Mombasa Expressway project, Africa’s largest toll road project. Instead, it has issued a notice to the Kenya National Highways Authority (KeNHA) to expand the existing highway. The four-lane expressway was to be constructed by American private equity firm Everstrong Capital Kenya. The terms outlined the project was to be undertaken under a Public-Private Partnership (PPP) model. The aim of it was to cut travel costs between Nairobi and the port city of Mombasa.
However, after consideration, the public-private partnership (PPP) committee of the National Treasury resolved on its termination. The committee issued a statement noting that the main reason for this was because it did not meet relevant criteria. They also noted that it should be abandoned in accordance with Section 43 (11) (c) of the PPP Act, 2021. The committee further directed KeNHA to restructure the project into an expansion of the existing A8 highway. Once done, they are expected to resubmit for evaluation in line with Section 43(12) of the PPP Act, 2021.
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The Significance of Terminating the Nairobi-Mombasa Expressway Project
The decision to terminate the Nairobi-Mombasa Expressway project marks an end to a fundamental and significant project. It sees the abandonment of what was to be Africa’s largest toll road project. Furthermore, it was to be on the biggest US infrastructure projects on the continent. The US has been overshadowed by China in African infrastructure, with Beijing funding numerous projects. These include railways, seaports, airports, and highways across the region. The PPP Committee had earlier rejected Everstrong’s project development report for the highway.
However, the Director General of the PPP noted that it could be resubmitted once identified gaps were addressed. Sources close to the project however cited uncertainty over land use and acquisition to host the expressway. Preliminary estimates placed land acquisition cost at sh12.9 billion. This factor could have significantly pushed up toll charges for motorists. Early projections showed that motorists might pay vetween sh12 and sh13 per kilometer which translated to sh5280 for the whole stretch. Everstrong maintained that the toll fees could drop if construction costs were reduced. It is not the first time the project has floundered. In 2018, US-based Bechtel was tapped to build the expressway. However, agreements fell through over a dispute regarding the financing terms.
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Usahihi Expressway Construction to Commence Next Year, Africa’s Largest Toll Road Project
