GOVERNMENT REJECTS 459KM NAIROBI-MOMBASA EXPRESSWAY PROPOSAL

The Kenya National Highways Authority (KeNHA) has officially revoked a Privately Initiated Proposal (PIP) for the construction of the Nairobi-Mombasa (Usahihi) Expressway. The ambitious 459-kilometre project, which was to run from Mlolongo in Machakos County to Bonje in Mombasa County, was intended to be developed under a Public-Private Partnership (PPP) model. Following a thorough evaluation of the submitted documents by the Contracting Authority and a subsequent report presented to the PPP Committee under the National Treasury and Economic Planning, the proposal was found not to meet the required criteria.

 As a result, KeNHA has instructed that the project be discontinued in its current form. The PPP Committee has advised the contractor to consider restructuring the proposal by focusing on the expansion of the existing A8 highway. The revised plan may then be resubmitted for fresh evaluation, in accordance with Section 43(12) of the PPP Act, 2021.Initially, KeNHA had projected the expressway’s completion within five years. The project was to involve detailed deliberations over its planning, cost, and implementation.

The contract had been awarded to the Korean Overseas Infrastructure and Development Corporation (KIND) after the U.S. based Bechtel Engineering declined the offer due to disagreements over the proposed financing model. The project was to follow a toll-based revenue model, whereby the contractor would fund construction and recover costs through toll fees charged to users.