Kenya has decided to terminate a 1.3-billion euro highway expansion deal with a French-led consortium, shifting the project to a Chinese contractor, according to government officials and sources familiar with the matter.
The project, which involves transforming a 140 km stretch of single-lane road between Nairobi and Nakuru into a multilane highway, was initially signed in Paris in 2020 during a visit by then-President Uhuru Kenyatta.
The Kenyan government’s decision to cancel the contract follows disagreements over the terms, particularly regarding the distribution of risks related to insufficient traffic demand, which the Kenya National Highways Authority (KeNHA) said would have been borne by the government.
“KeNHA requested a restructuring of the contract… but the proposal was deemed unbankable, leading to a deadlock,” the agency told the Associated Press.
No construction had begun on the highway at the time of the termination. The French consortium, which includes Vinci Highways, Vinci Concessions, and Meridiam SAS, did not immediately comment on the cancellation.
Sources indicated that the contract would now be awarded to a Chinese company, although the name of the contractor has not yet been revealed.
Kenya’s Finance Minister John Mbadi visited Beijing earlier this month for talks with senior Chinese officials, with reports suggesting that President William Ruto is expected to visit China later this month for further discussions.