President William Ruto’s administration has cancelled a contract signed by a French investor to construct the Nairobi-Mau Summit toll road. . Transport CS Kipchumba Murkomen speaking at a past event. The 233-kilometre highway construction, scheduled to begin in 2021, is yet to begin 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 the 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 will 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. Subscribe to watch new videos The CS revealed that there are more than five companies that are willing to take the project and its full risk. 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.
by Japhet Ruto Wycliffe Musalia
