Latest news with #KenyaNationalHighwaysAuthority
Business Insider
12-08-2025
- 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.
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)
