Kenya cancels $1.39bn highway deal with Vinci
Infrastructure Kenya cancels $1.39bn highway deal with Vinci
By
Kenya is adjusting its approach to large-scale projects such as roads in response to financial constraints
The Kenyan government has terminated a US $1.39bn highway expansion agreement with Vinci Highways. The project could potentially be awarded to a Chinese contractor, as confirmed by government officials and sources familiar with the matter.
The project, initially signed in Paris in 2020 during a visit by then-President Uhuru Kenyatta, aimed to transform a 140km single-lane road into a multi-lane highway connecting Nairobi to Nakuru, a city in Kenya's Rift Valley region.
The Kenya National Highways Authority (KeNHA) expressed dissatisfaction with the deal, stating that it was not favorable to the country. The agreement would have required the government to cover the costs if insufficient vehicles utilised the road. KeNHA attempted to modify the contract, but Vinci refused to agree, leading the government to cancel the deal, as per a report.
'KeNHA requested a restructuring of the contract but the proposal was considered unbankable thus creating a stalemate,' the agency stated. This led to the issuance of a formal termination notice, effectively ending the deal before any construction had begun.
The French-led group included Vinci Highways, Vinci Concessions, and private equity firm Meridiam. Two sources with direct knowledge of the government's plans revealed that the project is now expected to be handed over to a Chinese construction company, although the specific firm has not yet been publicly identified.
This shift follows a high-level visit to Beijing earlier this month by Kenya's Finance Minister John Mbadi, who led a delegation for talks with senior Chinese officials. Local media have also reported that President William Ruto is scheduled for a state visit to China later this month, signaling a strengthening of bilateral ties.
Kenya is adjusting its approach to large-scale projects like roads in response to financial constraints. To address these challenges, the country is collaborating with both Western and Chinese partners to develop its infrastructure and foster economic growth.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Dubai Eye
2 hours ago
- Dubai Eye
Israel kills 3 rescuers, journalist in strikes on Gaza: Palestinian media
Israel killed three medical services staff and a journalist during strikes on Tuffah neighbourhood in Gaza City, Palestinian media said on Monday. The three rescuers were killed while working to save wounded people and recover bodies in the neighbourhood, Shehab news agency said. The Israeli military did not immediately respond to a request for comment. It said earlier that its forces continued to operate against what it deemed "terrorist organisations" throughout the Gaza strip. As many as 66 Palestinian civilians were also killed and others wounded on Monday evening as Israeli airstrikes continued to pound various areas across the Gaza Strip. Hamas-led fighters took 251 hostages and killed 1,200 people, most of them civilians, in an attack on Israel on October 7, 2023. In response, Israel's offensive has since killed more than 54,927 Palestinians, most of them civilians, according to health authorities in Gaza, and flattened much of the heavily built-up coastal territory.
Al Etihad
4 hours ago
- Al Etihad
14-year-old student stabs to death assistant at French school
10 June 2025 18:06 NOGENT, FRANCE (AFP)French President Emmanuel Macron on Tuesday condemned "senseless... violence" after a 14-year-old pupil fatally stabbed a teaching assistant, the latest deadly incident at a school in the secondary school student was arrested after attacking the 31-year-old assistant with a knife during a bag search in Nogent in eastern France, officials has in recent years seen several attacks on teachers and pupils by other March, police started random searches for knives and other weapons concealed in bags at and around assistant at the Francoise Dolto school in Nogent was stabbed several times shortly before 8:00am, "as pupils were arriving for a visual inspection of their bags in the presence of the police", education officials suspect was taken into vehicles and police cars were parked outside the school at midday. Pupils has been sent home and classes were suspended for Tuesday and Wednesday."While protecting our children, a teaching assistant lost her life, the victim of a senseless wave of violence," Macron wrote on X."The nation is in mourning and the government is mobilised to reduce crime," he interior ministry said on Tuesday that between March 26 and May 26, 6,000 checks led to the seizure of 186 knives.
Tourism Breaking News
5 hours ago
- Tourism Breaking News
China extends visa-free entry to four GCC countries
Post Views: 35 China has launched a trial policy granting unilateral visa-free entry to citizens of Saudi Arabia, Oman, Kuwait, and Bahrain, expanding its visa-free access list to 47 countries, as per the recent report. Effective until June 8, 2026, the policy allows ordinary passport holders from these four Gulf Cooperation Council (GCC) countries to enter China visa-free for up to 30 days for business, tourism, family visits, cultural exchange, and transit. The policy has been warmly received across the Gulf region and is expected to enhance bilateral exchanges, strengthen cultural and people-to-people ties, and drive broader cooperation between China and the GCC. Currently, around 20 direct flights operate weekly between key Chinese cities—including Beijing, Shanghai, Guangzhou, and Shenzhen—and Saudi cities like Riyadh and Jeddah. The UAE is connected to 13 cities across mainland China through direct flights. This expansion marks a significant step in building economic and cultural relations between China and the Gulf states.
