In a costly setback for Kenya’s infrastructure ambitions, the government is set to pay Sh6 billion in compensation to French firms after abruptly cancelling the controversial Nairobi–Nakuru–Mau Summit Toll Road project, initially valued at Sh190 billion.
The project, awarded to a consortium led by French firms through a Public-Private Partnership (PPP), was terminated after public outcry over anticipated high toll charges.
Critics warned that motorists would be hit with excessive fees for using a critical highway corridor.
Sources indicate that the payout stems from contractual obligations, with the French companies demanding reimbursement for preliminary works, financial losses, and breach of agreement terms.
The move raises red flags over the government’s approach to high-value infrastructure contracts and poor risk management.
In a twist that further complicates matters, the project has now reportedly been handed over to Chinese firms, sparking concern over transparency and policy consistency in Kenya’s infrastructure deals.
Implications
• The Sh6 billion compensation adds fresh pressure to Kenya’s already strained public finances.
• It risks undermining investor confidence in Kenya’s PPP framework.
• The sudden pivot to Chinese contractors raises fears of backroom deals and opaque tendering processes.
With questions mounting over who will foot the bill and how such costly missteps will be prevented in the future, this fiasco serves as a stark reminder: botched deals carry steep price tags—and taxpayers often foot the bill.
