Kenya pivots to China, away from France for highway deal
The deal to turn 140 km (87 miles) of single-lane road into a multilane highway linking the capital Nairobi to the Rift Valley city of Nakuru was signed in Paris in 2020 during a visit by then-President Uhuru Kenyatta.
Kenya's decision to end the contract comes after government authorities had sought to revisit the terms of the agreement, which the Kenya National Highways Authority (KeNHA) said put the risk from insufficient traffic demand onto the government.
"KeNHA requested a restructuring of the contract ... but the proposal was considered unbankable thus creating a stalemate," the agency told Reuters.
This led to KeNHA issuing a notice of termination to end the public-private partnership contract, it said.
Highway construction for the project had not yet begun.
French private equity group Meridiam SAS and Vinci Concessions - also a part of the French infrastructure group - are members of the consortium that is led by Vinci Highways.
Vinci declined to comment on the contract's termination. Meridiam did not immediately respond to a request for comment.
Meanwhile, two sources with direct knowledge of the government's plan said the contract would be going to a Chinese company, which has not yet been disclosed.
The sources asked not to be named as they were not authorised to speak to media.
Kenya's Finance Minister John Mbadi led a team of officials to Beijing this month, where they met senior officials. Domestic media have reported that President William Ruto will be heading to China for a state visit later this month.
(Reporting by Duncan Miriri; Additional reporting by Liz Lee in Beijing; Editing by Karin Strohecker and Joe Bavier)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
What's On
3 hours ago
- What's On
Bar du Port set to open at Yas Marina Abu Dhabi - What's On
Abu Dhabi, get ready to raise your glasses. Bar du Port, the French-style bar that has been charming Dubai, Doha, Beirut, Byblos and Cairo, is dropping anchor at Yas Marina later this year. Think Riviera chic with just the right amount of mischief. The new location will take over the prime waterfront spot that has been home to Iris for more than a decade. It is a big swap, but Iris fans shouldn't panic just yet. The brand is working on its next act, while Bar du Port sails in with its own blend of luxury and fun. If you have ever visited one of their other locations, you will know Bar du Port is not your average bar. It is the kind of place where drinks come with a side of French flair, where the crowd is a mix of jet-setters and locals, and where the music and menu keep the energy buzzing long after sunset. This is the kind of bar that makes you feel like you've been whisked straight to the Riviera, even if your passport is still in your pocket. General Manager Jacque Kassab said this was an exciting new chapter. 'We are thrilled to bring Bar du Port's signature flair to Yas Marina and look forward to welcoming guests from across the world,' Kassab said. The Yas Marina address feels like a natural fit, simply because it's already a playground for nightlife, food, and fast cars. Bar du Port's arrival cements its reputation as a hotspot for those who like their evenings with a dash of glamour. And this is only the beginning. The group behind Bar du Port, AlphaMind, has big plans for Abu Dhabi, with three more venues on the way in the next year and a half. Bar du Port is expected to open sometime between October and December to usher Abu Dhabi into its world of 'a little luxury, a lot of fun.' Images: supplied > Sign up for FREE to get exclusive updates that you are interested in
Web Release
4 hours ago
- Web Release
LG PRESENTS NEW SPACE- AND ENERGY-EFFICIENT REFRIGERATOR LINEUP AT IFA 2025
LG Electronics (LG) is unveiling its latest refrigerator lineup for the European market at IFA 2025. Designed to deliver top-tier energy efficiency, the new french door and bottom-freezer models have been developed specifically for Europe's unique housing environments and consumer lifestyles, reflecting LG's extensive research into local needs and preferences. The lineup combines energy-saving performance, smart features and space-efficient styling that integrates seamlessly into modern homes. Outstanding Energy Efficiency Responding to increased demand for energy-efficient appliances across Europe, LG is introducing models that meet – and significantly surpass – the European Union's highest ('A') energy rating. The new bottom-freezer model exceeds the requirement for the A rating, while the French door model has impressively earned an A rating, despite being in a category where such ratings are rare. LG's exceptional energy efficiency was made possible by its optimized insulation design tailored for the European market, as well as AI-based features that help reduce electricity consumption by learning household usage patterns and optimizing compressor operation during periods of low activity.
Arabian Post
5 hours ago
- Arabian Post
US Leads Greenfield FDI in Saudi Arabia for 2025
The United States has emerged as the dominant force in greenfield foreign direct investment in Saudi Arabia for the first half of 2025. Accounting for 61 projects with a combined value of $2.7 billion, American investments represented nearly a third of the total project count and capital investment during the period, according to a report by Emirates NBD. Saudi Arabia continues to be an attractive destination for global investors, benefiting from its Vision 2030 reform programme, which aims to diversify the economy away from oil dependency. This strategy has driven significant foreign capital into various sectors, from real estate to technology and infrastructure. The U. S. has capitalised on this with robust participation, reaffirming its growing stake in the Kingdom's economic transformation. A key driver behind the U. S. investment surge is the Kingdom's large-scale infrastructure projects and its push for technological advancement. As part of the Vision 2030 plan, Saudi Arabia has been encouraging the development of smart cities, green technologies, and renewable energy solutions. Many American companies have seized opportunities in these sectors, contributing to the sharp rise in greenfield FDI from the U. S. ADVERTISEMENT The substantial $2.7 billion investment from the U. S. follows a pattern of rising interest from American businesses looking to establish a foothold in the Middle East's largest economy. Companies from various industries, including construction, energy, technology, and healthcare, have been particularly active, attracted by the government's incentives and the Kingdom's ambition to position itself as a global business hub. Egypt ranks second in terms of capital investment into Saudi Arabia, contributing $1.81 billion through 11 projects. These investments are primarily focused on the real estate sector, with major developments pushing the capital inflow. The surge in real estate development aligns with Saudi Arabia's plans to expand its residential and commercial infrastructure to accommodate its growing population and the influx of foreign workers. China has also played a significant role, contributing $858.3 million in greenfield FDI across 11 projects. Despite a smaller share of the total, China's investments are noteworthy, with Chinese firms increasingly involved in sectors such as construction, renewable energy, and technology. This continued engagement highlights China's ongoing strategic interest in the Middle East, especially as it seeks to expand its Belt and Road Initiative projects in the region. France's contributions have been slightly more modest, with $771.7 million invested across six projects. French businesses have targeted sectors such as luxury goods, healthcare, and technology, with an eye on capitalising on Saudi Arabia's growing consumer market. France's involvement further signals the diverse range of global powers interested in the Kingdom's long-term economic growth. The UAE, a close regional partner to Saudi Arabia, also made notable contributions. UAE investors were involved in 25 projects worth $205.3 million. While this is a smaller share compared to other countries, the UAE's investments are still substantial, reflecting its desire to strengthen its economic presence in the region. These ventures span multiple sectors, including construction, hospitality, and financial services, areas where UAE-based firms have established themselves as leaders. Saudi Arabia's economic diversification strategy appears to be paying off, with global investors increasingly attracted to the Kingdom's business-friendly environment and long-term growth prospects. Greenfield FDI, which typically involves setting up new businesses or expanding existing operations, is seen as a strong indicator of foreign confidence in the local economy. The surge in investment projects is a testament to the effectiveness of Vision 2030 policies in reshaping Saudi Arabia's economic landscape. One of the factors behind Saudi Arabia's successful draw of greenfield FDI is the significant improvement in its business climate. Efforts to streamline regulations, enhance legal frameworks, and incentivise foreign investments have played a crucial role. Furthermore, the development of special economic zones and the introduction of regulatory reforms have made it easier for international firms to establish operations.
