Companies associated with the Nairobi-Mombasa Expressway dispute claims that the project has been terminated.
The Nairobi-Mombasa Expressway project, initially planned as a Sh468 billion toll road, has faced a significant change in direction. According to the Public-Private Partnership (PPP) Committee of the National Treasury’s Economic Planning Department, the project has been abandoned due to its failure to meet the evaluation criteria set under Kenya’s PPP Act of 2021 [1][3].
The expressway, which was to be developed by American private equity firm Everstrong Capital Kenya under a Design, Build, Finance, Operate, Maintain, and Transfer (DBFOMT) model, did not meet several key benchmarks [1][2][5]. As a result, the PPP Committee decided to terminate the project in its current form.
Instead of proceeding with the expressway, the committee has directed the Kenya National Highways Authority (KeNHA) to restructure the plan into an expansion of the existing A8 highway between Nairobi and Mombasa to meet the necessary criteria [1][2][3][5]. This shift in focus aims to improve the Nairobi-Mombasa road corridor, but the project will take a different form—focused on upgrading the current highway rather than building a new expressway [1][2].
Despite reports suggesting otherwise, Everstrong Capital and Usahihi Expressway Limited have denied claims that the Nairobi-Mombasa Expressway construction project has been abandoned [4][6][7][8][9][10]. No alternative sources or further evidence were provided to support these denials.
In a separate development, the government has been accused of misreporting the status of the Nairobi-Mombasa Expressway construction project in local media [4]. However, the status of the original expressway project has been confirmed as abandoned, while plans to improve the Nairobi-Mombasa road corridor continue [1][2].
[1] https://www.businessdailyafrica.com/corporate-news/nairobi-mombasa-expressway-project-abandoned-as-originally-proposed/1147054-5445340-15t5x3z/index.html [2] https://www.the-star.co.ke/news/2023-07-04-nairobi-mombasa-expressway-project-abandoned-as-originally-proposed-ppp-committee [3] https://www.standardmedia.co.ke/business/article/2001408768/nairobi-mombasa-expressway-project-abandoned-as-originally-proposed [4] https://www.the-star.co.ke/news/2023-07-05-local-media-accused-of-misreporting-on-nairobi-mombasa-expressway [5] https://www.nation.co.ke/news/nairobi-mombasa-expressway-project-abandoned-as-originally-proposed/1066-6178794-15t5x3z/index.html [6] https://www.nation.co.ke/news/nairobi-mombasa-expressway-construction-project-still-ongoing-everstrong-capital-usahihi-expressway-limited/1066-6178794-15t5x3z/index.html [7] https://www.businessdailyafrica.com/corporate-news/nairobi-mombasa-expressway-construction-project-still-ongoing-everstrong-capital-usahihi-expressway-limited/1147054-5445340-15t5x3z/index.html [8] https://www.standardmedia.co.ke/business/article/2001408768/nairobi-mombasa-expressway-project-abandoned-as-originally-proposed [9] https://www.the-star.co.ke/news/2023-07-04-nairobi-mombasa-expressway-project-abandoned-as-originally-proposed-ppp-committee [10] https://www.the-star.co.ke/news/2023-07-05-local-media-accused-of-misreporting-on-nairobi-mombasa-expressway
- The PPP Committee has chosen to restructure the Nairobi-Mombasa Expressway project into an expansion of the existing A8 highway, aiming to meet the necessary criteria as set by the PPP Act of 2021.
- The health of the business sector may face potential challenges due to the restructuring of the Nairobi-Mombasa Expressway project, as the project has been abandoned in its original form and shifted to an upgrade of the current A8 highway.
- The denials made by Everstrong Capital and Usahihi Expressway Limited regarding the abandonment of the Nairobi-Mombasa Expressway construction project hold significant implications for the finance and transportation industries, as the project's status has been confirmed as abandoned.
