Multi-Million-Dollar Expansion Project on Nairobi-Nakuru Highway Faces Major Setback

The multi-million-dollar expansion project on the Nairobi-Nakuru highway project is once again against the ropes. This comes as the Motorists Association of Kenya has launched a petition to halt the proposed expansion of the highway. The Association developed an online website designed to facilitate objections to the government’s plans to construct and toll the highway. According to the motorists, the government’s decision to commence highway expansion and later toll it was unfair. The government hopes to implement the project through a Public Private Partnership (PPP). Furthermore, the motorists argued that the government’s proposed plan shifts the infrastructure financing burden to ordinary citizens. They noted that this is unfair as it absolves the government of its supposed mandate on such projects. The website contains a petition form that allows those who are against the proposed plans can provide personal details and their views. The scope of implementation on the project entails turning 140 km [87miles] of a single lane road into a multilane highway. This highway will join the capital Nairobi the Rift Valley city of Nakuru. Also, the deal was signed in Paris in 2020 during a visit by then -president Uhuru Kenyatta.

Project Factsheet

Cost: €1.3 billion (approximately Ksh 190 billion).

Scope: Expansion of a 140-kilometer single-lane road into a multi-lane highway.

Location: Linking Nairobi, the capital city, to Nakuru, a significant city in the Rift Valley.

Contractor (Initial): A consortium led by Vinci Highways, which included Vinci Concessions and French private equity firm Meridiam SAS.

Agreement signing: The deal was signed in Paris in 2020 during a state visit by the then-President Uhuru Kenyatta.

Public-Private Partnership (PPP): The project was structured as a PPP, with the consortium responsible for design, funding, and construction, and expected to recover their investment through toll collections over a concession period of 26 years (as per earlier reports on a similar project).

The Reasons for Opposing the Nairobi-Nakuru Highway Expansion

Some of the reasons motorists are against the expansion of the Nairobi-Nakuru highway is because of the recent developments noted. The opposing motorists have alleged a scheme by the National Treasury and the Ministry of Transport to table a bill. The bill would guide the imposition of toll fees on major national roads, including new highways. These, they claim, would amount to double taxation since drivers already pay the Road Maintenance Levy Fund. “Parliament has directed the Treasury, the Ministry of Transport and the Attorney-General to urgently table a Bill that will guide the imposition of toll fees on major national roads and the establishment of a toll fund,” the motorists stated.

Moreover, they noted that toll roads were replaced by Road Maintenance Levy Fund, which was raised to sh18 in 24 months. Because of this, introduction of toll fees to Public Private Partnership Schemes would be double taxation in their view. The association also opposed the construction of the Nairobi-Mombasa expressway through PPP. According to them, the ksh5000 as toll fees for motorists using the new expressway would be overwhelming. They claim the money raised from tolling the Nairobi-Mombasa Expressway would only profit private companies.