BUSINESS

Treasury Okays Nairobi–Nakuru–Mau Summit Road Project

Share
National Treasury building. PHOTO/@KeTreasury/X
National Treasury building. PHOTO/@KeTreasury/X
Share

Kenya is set to embark on one of its biggest road development projects after the government approved the construction of the Nairobi–Nakuru–Mau Summit and Nairobi–Maai Mahiu highways under a Public–Private Partnership (PPP) framework.

The Kenya National Highways Authority (KeNHA) announced that the PPP Committee of the National Treasury and Economic Planning had given the green light for the projects following a review of detailed feasibility studies.

The approval allows the procurement phase to begin for the two road sections, which are part of the busy northern corridor linking Nairobi to western Kenya and neighbouring countries.

According to KeNHA, the evaluation confirmed that the projects meet the requirements for public interest, financial feasibility, and value for money.

“The PPP Committee determined that the project meets the public interest, public–private partnership suitability, project feasibility and affordability criteria and approved the project to be procured under the PPP Act, 2021,” the agency said in a notice.

The roads will be developed under a Design, Build, Finance, Operate, Maintain and Transfer (DBFOMT) model, where the private sector handles construction and maintenance before transferring ownership back to the state after an agreed period.

The combined project will cover about 233 kilometres, 175 kilometres from Nairobi to Mau Summit and 58 kilometres from Nairobi to Maai Mahiu, cutting across Kiambu, Nyandarua and Nakuru counties.

Two consortia have submitted proposals for the multi-billion-shilling project: China Road and Bridge Corporation (CRBC) working with the National Social Security Fund (NSSF), and Shandong Hi-Speed Road and Bridge International Engineering Co., Ltd (SDRBI).

Once completed, the dual carriageway is expected to decongest traffic and reduce travel time on one of Kenya’s most vital transport routes, which supports trade across Uganda, Rwanda, and South Sudan.

However, the project has sparked fresh debate over toll fees that motorists will be required to pay. A report published on KeNHA’s website on October 22 indicates that drivers using the Nairobi–Nakuru–Mau Summit section will pay KSh 8 per kilometre, with a 1 per cent annual increase.

Critics warn that the charges could push up transport costs at a time when Kenyans are already grappling with high fuel prices and inflation. Long-distance transporters and ordinary motorists have voiced concerns that the tolls could make travel unaffordable for many.

Despite the concerns, KeNHA insists the project is necessary to sustain road maintenance and attract private funding for infrastructure.

“The Government of Kenya remains committed to delivering critical infrastructure to Kenyans,” the authority said, adding that all legal and social safeguards will be implemented before construction begins.

Once operational, the upgraded highway is expected to enhance safety, cut vehicle operating costs, and improve the flow of goods along the northern corridor, reinforcing Kenya’s role as the region’s transport hub.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Oil rig at the Ngamia-1 well in the Lokichar basin.
BUSINESS

Govt: Decade-Long Stalled Turkana Oil Project Set to Begin Next Year

Kenya is on the verge of finally unlocking commercial oil production in...

CBK headquarters in Nairobi
FEATURED STORY

CBK Receives Bids Worth KSh53.1Billion at Auction, a 132.8% Oversubscription

CBK(Central Bank of Kenya) received bids worth KSh 53.1 Billion at the...

From left - KCB Bank Kenya Director of Retail Banking, Jane Isiaho and Visa Country Manager and Senior Business Development Leader for Kenya, South Sudan and Somalia, John Njoroge during the launch of Tap-To-Phone solution which will enable business owners to accept card payments directly on their Near-Field Communications (NFC) enabled Android smartphones without the need for a traditional point-of-sale (POS) machine.
BUSINESS

KCB and Visa Partner to Enable Card Payments via Smartphones

KCB Bank Kenya has partnered with Visa to launch a Tap to...

Outside Central Bank of Kenya (CBK) headquarters in Nairobi.
BUSINESS

Treasury, CBK Sound Alarm as Financial Health Collapses Despite Inclusion Boom

The National Treasury and the Central Bank of Kenya (CBK) have released...