Kenya Abandons Sh299 Billion French Toll Road Deal Over Hidden Costs, Turns to Chinese Contractors

By Emmanuel Korir,

Kenya has decided to walk away from a massive Sh299 billion toll road deal with French investors, opting instead to hand the Rironi–Mau Summit highway project over to Chinese contractors. This shift comes after Treasury records revealed a hidden financial obligation that would have required the government to fork out around Sh23 billion each year for 13 years in service fees, all before the project could start generating toll revenue.

The Treasury concluded that taking on more debt to cover these payments would have been a heavy strain on public finances, especially as Kenya is currently focused on reducing its debt and addressing its budget deficit.

The original agreement, signed in 2020 during former President Uhuru Kenyatta’s tenure, had given a consortium made up of Vinci Highways SAS, Meridian Infrastructure Africa Fund and Vinci Concessions SAS the green light to manage the 175-kilometre Rironi–Mau Summit highway through a public-private partnership. The plan was for these investors to recoup their investment over a 30-year period by charging tolls, estimated at about Sh780 for small cars and Sh6,500 for heavy trucks making the full journey.

Additionally, Treasury documents highlighted a concerning provision that would have shifted financial risks onto taxpayers. Starting in the 14th year of the concession, the government would have had to compensate the private operator if toll revenues fell short of expectations, essentially guaranteeing income regardless of how many vehicles used the road. Officials pointed out that this arrangement posed significant long-term fiscal risks for Kenya and clashed with the country’s goals for affordability and debt sustainability.

After ending the agreement with the French, the government revamped the project and handed it over to Chinese contractors. The China Road and Bridge Corporation (CRBC), along with the National Social Security Fund (NSSF), is working on the Nairobi–Gilgil and Rironi–Maai Mahiu–Naivasha sections, while Shandong Hi-Speed Road and Bridge International Engineering is tackling the Gilgil–Mau Summit section. The new contracts have scrapped the minimum revenue guarantee from the previous deal and now allow the government to take 60 percent of toll revenue that exceeds a set threshold.

This highway is a key transport corridor for Kenya, connecting Nairobi to western regions and facilitating regional trade with Uganda, Rwanda, South Sudan and the eastern Democratic Republic of Congo via the Northern Corridor. The project aims to alleviate chronic congestion, cut down travel times and enhance the flow of goods from the Port of Mombasa. Construction is already in progress, with the government aiming for completion before the 2027 General Election, betting it will resonate with voters in the Rift Valley, western Kenya and Nyanza, who have endured years of congestion on the route. Whether the new Chinese-led concession fares better than the currently unprofitable Nairobi Expressway — a similarly structured toll project — will be the next test of Kenya’s PPP model.

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