Kenya has cancelled a €1.3 billion (approximately Ksh190.85 billion) road construction deal with a French-led consortium headed by Vinci SA, instead awarding the project to a Chinese contractor. The project aims to upgrade the 140 km (87 miles) Nairobi-Nakuru highway from a single-lane road to a dual carriageway.
The original agreement was signed in Paris, France in 2020 during a visit by former President Uhuru Kenyatta to the European nation.
According to government officials and sources familiar with the matter, the cancellation was due to disagreements over contract terms—particularly the allocation of risk in case of insufficient traffic demand.
Deal with French firm terminated
The Kenya National Highways Authority (KeNHA) stated that under the proposed deal, the government would have shouldered the majority of this risk.
“KeNHA requested a restructuring of the contract, but the proposal was considered unbankable, thus creating a stalemate,” the agency told Reuters.
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This prompted the agency to issue a notice of termination, officially ending the public-private partnership agreement.
The consortium, led by Vinci Highways, also included French private equity firm Meridiam SAS and Vinci Concessions—both part of the larger French infrastructure group. Construction on the highway had not yet commenced.
The decision to award the contract to a Chinese company follows a recent visit to Beijing by National Treasury Cabinet Secretary John Mbadi, who led a delegation of Kenyan officials for meetings with senior Chinese counterparts led by Minister of Finance Lan Fo’an.
Ruto announces collapse of deal with French company to build Nairobi-Nakuru Road
The latest development comes months after the Head of State revealed that the French company awarded the Nairobi-Nakuru highway construction tender had been dropped.
Speaking in Nakuru County on October 24, 2024, President Ruto noted that the unnamed company had failed to deliver on the project. As a result, the government asked the firm to step aside to pave the way for a new contractor.
“Travelling from Nakuru to Nairobi is still a problem because of traffic,” Ruto said. “I want to assure you that the French company that was awarded the tender to construct the road got stuck, and we have told them to leave so that we can look for another company. The highway from Nakuru through Mau Summit to Nairobi must become a dual carriageway.”
He reiterated the government’s commitment to upgrading the Nairobi-Nakuru highway to ease traffic congestion—an issue that has long plagued commuters.
Persistent gridlocks on the busy corridor have disrupted travel for years, especially during peak travel days.
In addition, the National Police Service has on several occasions, deployed reinforcements—including police helicopters and officers from nearby stations—to assist traffic units in managing the chaos.
Ruto promises dual carriageway for the highway
The persistent gridlocks have renewed public calls for improved infrastructure to address recurring traffic congestion, especially during peak travel seasons.
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In December 2024, President Ruto announced plans to begin construction of a dual carriageway along the Nairobi-Nakuru-Malaba road in 2025.
Speaking at AIC Kipkorgot in Uasin Gishu, President Ruto acknowledged the ongoing infrastructure challenges and reassured the public that the government was working on a lasting solution.
“We had a Public-Private Partnership (PPP) program with a French company, but it didn’t materialize. However, we have an alternative,” Ruto stated.
“The commitment I want to give you is that next year, we will begin constructing the dual carriageway from Nairobi to Malaba. We are in discussions with various companies to ensure this project eases congestion and enhances transport capability.”
Ruto’s Economic Advisor, Moses Kuria, has previously underscored the need for PPP models to fast-track the highway’s expansion and boost national infrastructure development.
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