President William Ruto has revealed how Kenya paid Ksh6.5 billion to terminate a stalled road construction contract for the Nairobi-Mau Summit Road.
Speaking during the Kenya Comprehensive School Heads Association National AGM in Mombasa on November 12, Ruto said the contract had been awarded to a French company in 2020, but little progress had been made 6 years later despite the importance of the highway linking Nairobi to western Kenya.
The President said that by the time his administration reviewed the project, the contractor had already taken Kenya to court, creating uncertainty over the future of the road and exposing taxpayers to potentially higher financial liabilities.
According to Ruto, the government assessed the situation and concluded that terminating the contract through negotiations would be less costly than pursuing a prolonged court dispute.
Ruto on Nairobi-Mau Summit Road Settlement
The President also said he personally discussed the matter with Emmanuel Macron, describing the French leader as a friend and explaining why Kenya had opted to walk away from the deal.
Ruto said he spoke to Macron after the French President recently requested him to host a France-Africa summit. During their engagement, he raised concerns over the contractor’s ability to deliver the project.
“He happens to be a good friend of mine. You saw the other day he asked me to host the French-Africa summit, and I told him, Mr President, we wanted to build a road. We did not want a court case. And I think this company does not have the capacity to do this road,” Ruto said.
The Head of State defended the decision to pay the settlement, saying the government faced a difficult choice between a negotiated exit and years of expensive court proceedings with no guarantee that the road would ever be completed.
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He said that after negotiations, Kenya agreed to pay US$ 50 million, estimated at about Ksh6.5 billion, to terminate the contract and end the dispute.
“Because I could see clearly that the matter that was already in court would cost us more money than the negotiation we had. So we decided to pay a $50 million exit fee because I could see clearly that a matter that had gone to court was going to cost us possibly $200-$300 million, and the Nairobi-Mau Summit would not be built. And it would have continued for many years,” he added.
Ruto maintained that the negotiated settlement protected taxpayers from potentially larger losses and allowed the government to move forward with efforts to complete the Nairobi-Mau Summit road project after years of delays and litigation.
President William Ruto said the Nairobi-Mau Summit Road is now 40 per cent complete and promised Kenyans he will ensure the road is finished in record time, and ultimately be expanded to Malaba.
A Better Choice for Kenyans
Ruto said the replacement project offers more value than the terminated French contract.
According to the President, the French-backed project would have cost Kenya $249 billion, while the current arrangement is expected to cost $191 billion.
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He also said the cancelled contract covered 175 kilometres, compared to 210 kilometres under the new project.
Ruto further stated that about 70 kilometres between Naivasha and Nakuru will be expanded into a six-lane highway under the new project.
The President also compared toll charges under the two arrangements, saying motorists would have paid Ksh12 per kilometre under the French contract compared to Ksh8 per kilometre under the ongoing project.
“These are the facts. My message to all those who are speaking against me regarding this matter, please calm down with your propaganda. We want to continue working,” he concluded.
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