The Kenyan government has officially terminated a €1.3 billion (approximately KSh190 billion) Public-Private Partnership (PPP) agreement with a French consortium led by VINCI Concessions and Meridiam SAS.
The contract aimed to upgrade the Nairobi–Nakuru–Mau Summit highway into a dual carriageway.
The cancellation, confirmed in April 2024, was primarily due to financial concerns.
The consortium’s demand for multi-billion-shilling service fees over a 13-year period raised alarms within the Kenyan Treasury, which deemed the financial obligations unsustainable given the country’s fiscal constraints .
This decision has introduced diplomatic tensions between Kenya and France. Despite a meeting between President William Ruto and French President Emmanuel Macron in January 2024 at the Élysée Palace, the Kenyan government proceeded with the contract termination, potentially exposing itself to significant termination penalties .
In response to the project’s cancellation, the Kenyan Cabinet approved a revised plan in March 2025 to dual the Rironi–Mau Summit road segment, with construction slated to commence in June. President Ruto indicated that the government is exploring alternative partnerships, including discussions with Chinese firms, to advance the project .
The original PPP agreement, signed in 2020, involved a 30-year Design, Build, Finance, Operate, and Transfer (DBFOT) model. The French consortium was responsible for financing, constructing, and managing the 233-kilometer highway, with the expectation of recouping investments through toll collections .
The Nairobi–Mau Summit highway is a critical infrastructure project, serving as a vital corridor for trade and transportation in Kenya and the broader East African region. Its successful completion is essential for enhancing connectivity and economic growth.
As Kenya seeks new partners to realize this infrastructure goal, the outcome of these developments will be closely watched by stakeholders and the international community.
