Latest news with #KeNHA
Business Insider
7 days ago
- Business
- Business Insider
Construction plans for Africa's largest toll road stall as US firm faces major setback
Kenyan authorities have raised concerns over a proposal by US-based infrastructure firm Everstrong Capital for the Nairobi–Mombasa Expressway, a flagship 440-kilometre project intended to link Kenya's two largest cities through a modern highway. Kenyan authorities rejected a proposal from US firm, Everstrong Capital for the Nairobi–Mombasa Expressway The project was to be Africa's largest toll road but has been revised for practicality and feasibility. Everstrong Capital is invited to restructure and resubmit its plans to meet existing standards. According to the Kenya National Highways Authority (KeNHA), the bid fell short of several key benchmarks set by the Public Private Partnership (PPP) Committee, prompting officials to request that the company review and resubmit its plans rather than face outright disqualification. The revision will see the original plan for a new expressway scrapped in favour of expanding the existing Nairobi–Mombasa highway. With this change in scope, the development effectively signals the end of what had been set to become Africa's largest toll road and one of the most ambitious US-backed infrastructure projects on the continent. Kenyan authorities downplay proposal The decision comes just two months after Everstrong Capital, led by Senior Advisor Kyle McCarter, submitted a 2,300-page feasibility study report to KeNHA for review. 'The PPP Committee of the National Treasury and Economic Planning delivered its decision during its 54th Ordinary PPP Committee meeting held on July 2, 2025, ' KeNHA stated. 'It was determined that the proposal does not meet the relevant criteria and should be abandoned per Section 43(11)(c) of the PPP Act, 2021.' While the current proposal has been rejected, KeNHA has invited Everstrong Capital to restructure the project to meet the required standards, specifically by focusing on upgrading the existing highway rather than building an entirely new road. The proposed expressway, aimed at easing traffic congestion, reducing travel time between Kenya's capital and its main port city, and boosting trade along the Northern Corridor, has been a priority project for Nairobi for several years. The revised proposal may be resubmitted for fresh consideration by the PPP Committee in accordance with Section 43 of the PPP Act.
ME Construction
24-04-2025
- Business
- ME Construction
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.
Zawya
11-04-2025
- Business
- Zawya
Kenya pivots to China, away from France for highway deal
Kenya will terminate a 1.3-billion euro highway expansion deal with a consortium led by France's Vinci SA with the project expected to go to a Chinese contractor instead, government officials and sources said. 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)
